Clarity offered as uncertainty persists: Standard Chartered Hong Kong Unveils Global Market Outlook and Local Insights
Here’s what Standard Chartered’s 2026 market outlook has to say about AI-led equity optimism, income strategies and portfolio construction
[The content of this article has been produced by our advertising partner.]
A month into 2026, banks are publishing market outlooks that impose structure on an uncertain year. Standard Chartered’s report favours equities, continues to back AI, looks to emerging market bonds for income and retains gold as a defensive allocation.
The preference for equities, particularly in the US and Asia excluding Japan, are backed by expectations of AI-led earnings growth.
According to the bank’s 2026 Global Market Outlook report, titled Blowing Bubbles, published by its Chief Investment Office (CIO), productivity gains from automation and data-driven decision-making will offset valuation pressure and support corporate profitability. It is also argued that current enthusiasm surrounding AI does not amount to a speculative bubble.
While near-term market swings are expected to persist, he believes resilient global fundamentals, continued fiscal support across major economies and a firm earnings outlook, particularly in the US and Asia excluding Japan, remain supportive. The report also projected Asia ex-Japan to deliver the highest earnings growth among major regions over the next 12 months.
When it comes to fixed income, the preference for emerging market bonds stems from frustration with developed market yields and expectations of easier monetary policy in the US.
Attractive carry, improving fiscal discipline in selected economies and a softer dollar support this argument. For investors seeking income, the proposition is appealing.
The Bank’s CIO sees US 10-year government bond yields above 4.25% as attractive since they expect it to ease to the 3.75%- 4.00% range over the next 6-12 months.
Gold and alternative assets are presented as tools for managing correlation risk, particularly at a time when equities and bonds have shown a tendency to move in tandem.
Geopolitical tension, fiscal expansion and monetary experimentation continue to support asset classes that behave differently from traditional holdings. Ho takes a pragmatic view of diversification. With traditional asset relationships proving less reliable, portfolios are being built across equities, fixed income, alternatives and structured solutions, with the aim of spreading exposure rather than relying on a single market outcome.
The focus, he suggests, is not on predicting direction but on positioning clients so portfolios remain workable across a wider range of scenarios, whether through income generation, selective growth exposure or defensive holdings such as gold. The macro environment underpinning the 2026 outlook is cautiously favourable, according to the report. Sub-trend growth in the US, combined with a series of moderate interest rate cuts, is expected to allow risk assets to perform without the disruption of recession.
In addition to the report, the Bank has also developed a series of localised videos intended to translate broad investment themes into shorter, practical observations for local investors. The material complements the global video suite and shows how macro views are interpreted from the perspective of Hong Kong-based investors, with a focus on portfolio construction rather than market timing.
