Investment Monthly: Markets shift towards tech-led structural opportunities

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Since early April, ceasefire negotiations have led to a rebound in risk appetite. As it will take time for the Strait of Hormuz and oil production to normalise, we believe energy prices are likely to remain elevated. We upgrade Energy to overweight across regions following its recent sell-off, to navigate oil price volatility and generate strong cash flows, while continuing to build resilient portfolios with quality bonds, gold and multi-asset diversification.

Recent headlines around the US Q1 earnings season affirm the continuation of the tech capex cycle. As previous concerns over excessive investment and AI disrupting software companies have eased, and Technology continues to be supported by improving earnings expectations and reduced valuations, we have further increased our exposure to global and US technology and upgrade European IT to overweight due to stronger earnings visibility.

China’s Q1 GDP grew 5% y-o-y, supported by robust manufacturing and solid exports, along with a policy tilt towards domestic support and innovation. With a diversified energy mix, the Middle East conflict appears to have had a limited impact. Earnings growth is expected to be around 10%, with valuations broadly in line with historical averages at 11x. We continue to favour Chinese equities, balancing innovation and high-quality dividend stocks. We downgrade Japanese equities to neutral due to the country’s vulnerability to higher oil prices and less attractive valuations.

https://www.hsbc.com.my/wealth/insights/asset-class-views/investment-monthly/markets-shift-towards-tech-led-structural-opportunities/

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Publish Date: Thu, 30 Apr 2026, 08:04 AM

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