M&G's Vikas Pershad: Asia Set to Lead Next Market Rally, Driven by AI and Policy Shifts

1 min read Updated on 03 Nov 2025, 01:17 PM

Reviewed by

Anirudha BasakScanX News Team

Overview

Vikas Pershad of M&G Investments predicts Asia's significant role in the next global market rally. He highlights AI hardware as a key investment area, focusing on semiconductors, memory, and power infrastructure. China's evolution from a fast follower to an innovator in tech is noted, with its global semiconductor manufacturing equipment spend rising from 5% to 40%. India's market is seen as increasingly attractive by 2026 due to macro tailwinds and favorable policies. Pershad recommends an active investment strategy, rotating between countries and sectors across Asia.

*this image is generated using AI for illustrative purposes only.

Vikas Pershad, Portfolio Manager for Asia Equities at M&G Investments, has shared his bullish outlook on Asia's role in the next global market rally. Pershad's insights highlight the transformative impact of technology, public policy, and demographics on global equity markets, with a particular focus on the Asian region.

AI Hardware: The Next Investment Frontier

According to Pershad, AI hardware is poised to be a key driver of the next global investment cycle. He specifically points to:

Semiconductors
Memory
Power infrastructure

These sectors are expected to see significant growth and investment opportunities. However, Pershad also warns that software and IT services may face margin pressures due to increased automation.

China's Technological Leap

Pershad emphasizes China's remarkable evolution in the tech sector:

Aspect	Past	Present
Role	Fast follower	Innovator
Global semiconductor manufacturing equipment spend	5% (a decade ago)	40% (current)

This shift underscores China's growing influence in the global technology landscape.

India's Promising Outlook

While Pershad was previously underweight on India due to better opportunities in Japan, Korea, and China, he now sees an increasingly attractive market setup for India by 2026. This positive outlook is attributed to:

Strong macro tailwinds
Favorable policy environment

Investment Strategy: Active Stock-Picking Across Asia

Pershad advocates for an active investment approach in Asian markets. He believes the best opportunities lie in:

Rotating between countries
Shifting between sectors

This strategy allows investors to capitalize on the dynamic nature of Asian markets and the ongoing shifts in economic power and technological innovation.

Conclusion

As technology, policy, and demographics reshape global equity markets, Asia appears well-positioned to lead the next market rally. Investors should pay close attention to AI hardware sectors, China's technological advancements, and India's improving market conditions. However, as always, a careful and active investment approach is recommended to navigate the complexities and opportunities in these evolving markets.