“We’re definitely in the stronger-for-longer camp,” Moe, Goldman’s chief Apac regional equity strategist, told Bloomberg TV’s Shery Ahn. He pointed to the estimated hyperscaler investment of around US$800 billion this year and about US$1.2 trillion in 2027 as the primary demand signal for Asia’s AI hardware supply chain.

Asia’s “exceedingly low” valuations also offer additional support, Moe said. The region trades at about 10 times earnings on a headline basis, at the cheaper end of historical ranges. Earnings growth will also provide a buffer against higher rates, he added.  

For the rest of the year, Moe expects markets to remain “a bit bumpy” heading into the US midterm elections, with higher energy prices and geopolitical risk adding to the pressure. After that period, he said a rally towards the year-end is likely, driven by earnings growth and valuations.

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