Categories: Business

Asian Equities Look Promising; UBS Says India Among Top Beneficiaries

UBS reports that Asian equities trade at attractive valuations, with India set for strong gains driven by rising corporate profits, AI-led growth, solid earnings, and favourable macro trends across the region.

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Published by Aishwarya Samant
Published: November 28, 2025 12:24:36 IST

Asian Equity Markets at Attractive Valuations, UBS Sees India as a Key Beneficiary

Asian equity markets are currently trading at attractive valuations, and within this landscape, India stands out as a strong contender for significant gains. According to a UBS report, improving business cycles and rising corporate profits are positioning India favourably compared to its global peers. The report notes that “beyond mainland China, India should benefit from rising corporate profits.”

Asian Markets Trade at a Discount, Supported by Strong Macro Outlook

UBS highlights that regional valuations across Asia remain appealing, with markets trading at a discount amid a stable macroeconomic environment and a weaker US dollar. The report adds that positive AI-driven capital expenditure, solid earnings growth, and improving revision breadth are contributing to the region’s strong investment narrative.

Additionally, markets such as Singapore and Hong Kong are expected to benefit from shareholder value initiatives and lower interest rates, respectively.

India Positioned for Meaningful Growth as AI and Corporate Profits Rise

India continues to emerge as one of Asia’s top beneficiaries, driven by rising corporate profitability and favourable business conditions. The report also points to strong AI innovation and robust spending, which are fuelling momentum across the region. Investors seeking diversification may find broader Asian exposure attractive, supported by technology investment upgrades, healthy earnings, and appealing valuations.

UBS expects APAC (ex-Japan) growth to stay strong at just under 5 per cent, with a softer start to the year but a stronger finish in 2026 as interest rates ease.

 Global Outlook Shows Resilient Growth; Sector Preferences Vary by Region

On a global scale, UBS anticipates economic growth to remain resilient and accelerate throughout the year. In the US, preferred sectors include technology, utilities and healthcare. Meanwhile, Europe is expected to favour industrials, technology, and utilities.

Within Asia, UBS maintains a preference for mainland China, especially tech, alongside Japan, Hong Kong, Singapore, and India. The report also signals a positive global outlook for the banking sector, supported by improving credit growth and favourable macroeconomic trends.
(With Inputs From ANI)

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Published by Aishwarya Samant
Published: November 28, 2025 12:24:36 IST

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