Asia steadies as investors navigate policy shifts and US uncertainty

Fidelity

Markets opened with tentative strength, balancing the push of renewed interest in technology with the pull of political and monetary questions that could redefine the weeks ahead.

Equities across the region edged higher, supported by the resilience of technology names and a softer backdrop in US Treasury yields. The MSCI Asia ex Japan index advanced modestly, leaving it on track to close September with a meaningful monthly rise. Japan stood apart, its leading indices slipping under the weight of a firmer yen, which narrowed export margins and drew selling in major industrials.

After a week of turbulence, semiconductor leaders such as South Korea’s SK Hynix powered higher, signalling that investors remain willing to back cyclical recovery themes when valuation and policy conditions align. That appetite was strengthened by easing bond yields in the United States, which offered relief to rate-sensitive assets and also reignited speculation about forthcoming cuts by the Federal Reserve.

Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets. Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.

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Fidelity Asian Values Annual Report 2025 – 17% total return

Fidelity Asian Values has reported strong results for the year ended 31 July 2025, delivering a 12.4% Net Asset Value return and a 17.0% total share price return, outperforming its benchmark index return of 7.1%.

Nitin Bajaj Fidelity explains investment strategy in China and Indonesia (LON:FAS)

Nitin Bajaj, portfolio manager of Fidelity Asian Values, sees attractive opportunities emerging in China and Indonesia as market dislocations create value for long-term investors.

In-demand Asian small-cap value stocks drive Fidelity Asian Values NAV up 16.2%

Fidelity Asian Values reported strong performance in its August 2025 monthly factsheet. The Trust’s NAV rose 16.2% over the 12 months to 31 August 2025, ahead of its reference index which gained 7.8%, while the share price increased 20.4% over the same period.

Fidelity Asian Values reports 17% share price rise over 12 months 

The Trust’s NAV rose 12.4% over the 12 months to 31 July 2025, ahead of the index at 7.1%, with the share price up 17.0%. Stock selection was the key driver of relative performance, with holdings in China and Hong Kong adding value, while overweight exposure to Indonesia detracted.

Fidelity favours investing in Chinese small and mid-cap companies (LON:FAS)

Fidelity Asian Values Investment Director Himalee Bahl highlights the Trust’s disciplined value-focused approach amid market uncertainty. By targeting undervalued small and mid-cap companies across China, Indonesia, and South Korea, the Trust avoids momentum-driven areas such as AI-related stocks in Taiwan and expensive Indian small caps.

Fidelity Asian Values significantly outperforms its index over 1 year (LON:FAS)

Over the 12 months to 30 June 2025, the Trust’s NAV rose 4.9%, outperforming its reference index which fell 0.1%, while the share price gained 6.9%. Stock selection was the key driver, with contrarian positions in China and Australia and picks in materials and consumer staples adding value, though an overweight in Indonesian small caps detracted.

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