JPMorgan Asia Growth & Income plc (LON:JAGI) has announced its latest factsheet for March 2026.
Month in review
As of 31/03/2026
- Asia Pacific equities sold off sharply in March as a spike in oil prices — following escalating US–Israeli military operations against Iran — triggered a broad risk-off move. The impact reverberated through deleveraging in higher-beta exposures, dispersion between energy-independent and import-dependent markets and a reassessment of inflation and policy trajectories against a stagflationary backdrop.
- China proved relatively resilient, supported by a diversified energy mix and firmer economic activity. South Korea came under pressure from the macro shock, memory pricing concerns and extended positioning. India weakened as the oil shock worsened the macro backdrop amid heavy foreign selling. In ASEAN, Malaysia held up on domestic demand confidence while Indonesia lagged.
- At the sector level, defensives led — energy, utilities and staples outperformed — while IT, materials, and consumer discretionary bore the brunt of de-risking.
- The trust outperformed the benchmark. Stock selection in South Korea, Taiwan and Australia, along with an overweight in Hong Kong, contributed positively, while the overweight in South Korea and underweight in Thailand detracted.
- In Korea, an underweight in SK Hynix proved beneficial as the market suffered heavy selling on geopolitical risk, with oil above USD 100 raising energy import concerns. Declining DRAM spot prices and Google’s TurboQuant memory compression technology also weighed on the stock. An overweight in S-Oil added value as it benefited from rising crude.
- High-yielding telecom holdings such as Taiwan Mobile and Telstra contributed in the risk-off environment. Taiwan Mobile raised its payout ratio to 101%, with free cash flow well above net profit. Telstra delivered a larger-than-expected ARPU increase through price rises, underpinned by ~60% revenue share and a significant network advantage.
- In China, Yangtze Power contributed on defensive characteristics, CATL gained on strong fourth-quarter results and EV/energy-storage demand, Foshan Haitian Flavouring beat expectations as internal reforms paid off, and Kweichow Moutai announced a surprise price hike signalling management confidence. Zero Thailand exposure detracted as the market outperformed, supported by upstream oil stocks and domestic defensives.
Looking ahead
As of 31/03/2026
- A weaker dollar, fiscal support and accommodative policy across the US, Europe and China should sustain global demand through 2026.
- North Asia remains central to the AI supply chain, with surging tech exports driving a broader Asian recovery supported by data centre buildouts across ASEAN and the GCC.
- We favour memory producers and complementary choke points, though valuation discipline is essential.
- China remains a two-speed market — deflationary pressures persist alongside AI-driven outperformance. In India, selective opportunities are emerging as the government targets growth revival.
- Valuations have re-rated, but earnings should underpin returns as leadership broadens into financials and industrials. Geopolitics remain an overhang, though tariff-related growth risks are fading.
JPMorgan Asia Growth & Income aims to provide total return from investing in equities quoted on the stock markets of Asia, excluding Japan. The Company will have a diversified portfolio of Asian stocks comprising around 50 to 80 investments
