UOB Asset Management (UOBAM) is urging investors to consider a shift towards Asian markets in the third quarter of 2025, as outlined in its upcoming Quarterly Investment Strategy. The firm highlights the nearly equal likelihood of three potential US economic outcomes: recession, continued growth, and stagflation. In light of these uncertainties, UOBAM recommends a neutral investment stance and regional diversification, particularly for those with portfolios heavily weighted in the US.
Anthony Raza, Head of UOBAM Multi-Asset Strategy, noted that the focus in Q2 was on President Trump’s unpredictable trade policies. However, in Q3, the attention is expected to pivot towards their impact on the US economy, with inflation and employment data being closely monitored for signs of recession. “So far, the data is inconclusive and could go either way in the coming months,” Raza stated.
The revaluation of Asian markets is already underway, with the region experiencing a more than 10% increase this year, compared to the US’s S&P 500 index’s 2% rise. Despite concerns over tariffs affecting China, UOBAM’s Group CIO, Chong Jiun Yeh, expressed optimism about the resilience of Chinese companies. Yeh highlighted Asia’s self-sustaining nature, robust domestic consumption, and the benefits of a weakening US dollar, which is currently at a three-year low.
UOBAM, a subsidiary of United Overseas Bank Limited, manages $376 billion in client assets and has a significant presence across Asia. The firm continues to be recognised for its digital innovation and sustainable investing initiatives.
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