Investors are increasingly optimistic about Asia’s emerging equities as the prospect of further monetary easing overshadows domestic risks, according to fund managers. The dovish stance of the U.S. Federal Reserve has provided Asian central banks with greater flexibility to cut rates without triggering significant currency pressures. Gary Tan, portfolio manager at Allspring Global Investments, highlighted this dynamic during the Reuters Global Markets Forum. Markets anticipate approximately 67 basis points of Fed rate cuts by year-end, including a 25-basis-point reduction recently. This has created a favorable environment for equity markets, particularly in Southeast Asia. Central banks in Indonesia, Thailand, and the Philippines have already implemented rate cuts in response to softening growth, despite ongoing political instability. South Korea has also signaled further easing to mitigate tariff-related economic impacts, while India retains some room for additional cuts. China, however, may hold off on further easing after earlier reductions. Naomi Fink, chief global strategist at Amova Asset Management, noted that these developments are supportive of equity markets. Tan emphasized the positive fundamentals in Southeast Asian companies, particularly in Indonesia and Thailand, reinforcing his bullish outlook on the region. Most Asian emerging market indexes, including South Korea and Taiwan, have reached record highs, with the MSCI Asia ex-Japan index closing at an all-time high. Investors remain particularly optimistic about India’s growth narrative and South Korea’s ‘Value-Up’ program, which aims to unlock shareholder value. Stephen Parker, co-head of global investment strategy at J.P. Morgan Private Bank, reiterated India’s appeal due to its robust growth and earnings potential. Tan also expressed confidence in South Korean shares, citing corporate governance reforms and structural growth drivers.