Standard Chartered Overweights China and Taiwan on AI and Earnings Growth

Key Facts

Amid growing optimism regarding emerging market resilience, Standard Chartered has issued a strategic update 'overweighting' Asia ex-Japan equities, with a specific preference for the Taiwan and China markets. This positive outlook is underpinned by strong corporate earnings prospects and massive capital expenditure driven by artificial intelligence technology. Furthermore, the bank noted that easing global oil-supply concerns has provided a more favorable backdrop for regional growth.

This recommendation coincides with mixed economic signals from China, where annual Industrial Production grew by 4.5%, exceeding the 4.3% forecast, per market data released on June 16, 2026. Conversely, Chinese Retail Sales fell by 0.6% during the same period, missing the expected 0.3% contraction. These figures highlight a robust manufacturing sector despite lingering domestic consumption headwinds, reinforcing the strategic pivot toward AI-linked and high-tech industrial stocks in the region.

Traders should monitor Standard Chartered (2888.HK), which stood at 210.80 HKD (at close June 22, 2026) following a session high of 211.20 HKD. Looking ahead, the economic calendar highlights UK Inflation data on June 17 as a key sentiment driver. Additionally, upcoming trade balance data from Japan and interest rate decisions in Australia and Japan will be critical in determining broader capital flows across Asian equity markets.