Asian Investors Repositioning Portfolios, JPMorgan's Craig Says

JPMorgan’s Kerry Craig reports Asian investors are actively repositioning portfolios as of March 2026, signaling strategic shifts rather than broad risk aversion. The moves reflect sector rotation within equities, not a mass exodus from risk assets. The adjustments suggest confidence in selective Asian markets despite global volatility, with investors reallocating capital to higher-growth sectors. Craig emphasizes this as a tactical realignment, not a defensive pullback. Geopolitical tensions, including Middle East conflicts and U.S.-China trade friction, may indirectly influence these portfolio changes. However, Craig downplays panic-driven selling in favor of calculated sectoral bets. China’s upcoming 2026 National People’s Congress could further shape investor sentiment, with policy announcements potentially accelerating or altering current repositioning trends. Regional fund flows remain resilient, with no signs of a systemic flight from Asian assets, though drone-related commodity disruptions and trade threats add layers of uncertainty.