India Ranked as the Top Equity Market in Asia-Pacific: BofA Survey

According to the most recent Fund Manager Survey (FMS) from BofA Securities, India has emerged as the most popular stock market in Asia Pacific. A net 42% of fund managers polled preferred Indian equities over other regional markets, ahead of Japan (39%), China (6%), and Singapore (3%).

"India emerges as the most favored market, with the perception that it will benefit from supply chain re-alignments caused by tariffs. Japan loses its top spot, while China moves up to third place from last month's lowest ranking. Thailand remains the least preferred market," according to a report based on a BofA Securities survey.

According to a survey conducted by BofA Securities, infrastructure and consumption remain the dominant investment themes in India. These sectors remain popular among investors, owing to strong domestic growth prospects. The May 2025 survey included 208 panelists who managed a total of $522 billion in assets. 174 fund managers with $458 billion in assets under management (AUM) responded to the global survey, while 109 panelists with $234 billion in AUM answered the regional Asia Pacific-focused questions. The survey was conducted from May 2 to May 8, 2025.

Economic outlook brightens

A more positive outlook for economic growth is helping to boost market return expectations across Asia Pacific. While a net 58% of fund managers continue to expect an earnings slowdown, this is a significant improvement from 78% the previous month.

Furthermore, current consensus earnings estimates appear more stable, allowing for potential upward revisions. On a broader scale, sentiment toward the global economy has improved. A net 59% of respondents now expect a weaker global economy, which is higher than last month's 82%, the most pessimistic reading yet. Similarly, expectations for the Asian economy have improved, with 77% forecasting weakness, down from 89% previously.

Sentiment about China improves

Investor sentiment toward China has begun to improve. Only 16% of respondents are now looking for opportunities outside of China, down from 26% last month. Notably, a record 10% of fund managers report being fully invested in Chinese equities.