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M Stanley: Asia Ready to Capture Surge in Global AI Capex; Lists Latest Regional Thematic Focus Stocks
2026-05-14 15:28:17
M Stanley said in a report that Asia-Pacific equities continue to benefit from index tilts toward computing, commodities and capital goods. The surge in artificial intelligence (AI) capital expenditure is driving earnings growth for AI enablers, while the bank also sees broader capital spending programs spanning defense and economic security, creating opportunities in industrials and commodities.

The report noted that Asia, with its upstream advantages, is well positioned to capture benefits from the global surge in AI capital expenditure, alongside the ongoing build-up in public spending on energy security and defense. By economic risk exposure breakdown, more than 50% of the weighting in Asia/emerging market indices comes from computing (semiconductors/hardware), commodities, capital goods and real assets. Earnings growth in computing remains strong, but valuations and positioning have also risen accordingly.

The bank finds cyclical sectors attractive and, unlike peers, maintains an "Overweight" stance on the commodities sector, which also benefits from the capex supercycle and enjoys better valuation support relative to historical levels and other sectors. Meanwhile, the capital goods sector has solid long-term prospects, though M Stanley noted its median valuation is close to that of the computing sector despite lower three-year growth expectations. Strategically, the bank remains "Overweight" on the industrials sector and will continue to work with its key industry teams to screen for high-potential opportunities.

M Stanley revised its Asia thematic focus list, adding four stocks and removing four, as follows:

Additions | Sector
Gulf Development PCL | Utilities
Mitsubishi Heavy Industries (7011.JP) | Industrials
FANUC (6954.JP) | Industrials
Wiwynn (6669.TW) | Information Technology
-----------------------------
Removals | Sector
Reliance Industries | Energy
Fujitsu (6702.JP) | Information Technology
Grab Holdings | Industrials
Goodman Group | Real Estate

M Stanley's latest Asia thematic focus list includes:
Taiwan Semiconductor Manufacturing (2330.TW)
Samsung Electronics (005930.KS)
TENCENT (00700.HK)
CONTEMPORARY AMPEREX (300750.SZ)
Delta Electronics (2308.TW)

AIA (01299.HK)
Mitsubishi Heavy Industries (7011.JP)
NAURA (002371.SZ)
Larsen & Toubro Ltd
Doosan Heavy Industries (034020.KS)

WUXI APPTEC (02359.HK)
Hanwha Aerospace (012450.KS)
FANUC (6954.JP)
Hyundai Electric (267260.KS)
INOVANCE TECH (300124.SZ)

Wiwynn (6669.TW)
Gulf Development PCL
ST Engineering
SIEYUAN ELEC (002028.SZ)
Furukawa Electric (5801.JP)

Taisei (1801.JP)
Lynas Rare Earths
Sojitz (2768.JP)
GS Yuasa (6674.JP)
GemLife Communities Group

(da/u)~

AASTOCKS Financial News
Website: www.aastocks.com

This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.