Bank of America's January fund manager survey shows Asian investors favoring Japan, Taiwan, and South Korea while turning negative on India. Bullish sentiment is driven by expectations of a positive semiconductor cycle and AI investment, with companies in South Korea and Taiwan positioned to benefit most.

Japan remains the top pick, with focus on Prime Minister Sanae Takaichi's plans for fiscal spending and tax cuts. South Korea's market surged 75% in 2025, outpacing Taiwan and Japan. Investors are growing more confident on China's recovery, seeing household risk appetite returning.

Investors turned underweight on India amid uncertainty over a potential U.S. trade deal and its 50% tariff on exports. Ongoing purchases of Russian oil remain a point of contention with Washington. Global growth expectations hit their highest since October 2021, with most Asian central banks expected to maintain dovish policies.