Bloomberg Daybreak: Asia Edition Hopes for Year-End Rally Grow, Moore Threads Chips Unveiled
Dec 22, 2025
Vasu Menon, Managing Director for Investment Strategy at OCBC, shares insights on the potential for a year-end equity rally, highlighting cheaper non-US markets and the reasons for optimism in Asia. Yan Wang, Macro chief emerging markets and China strategist at Alpine, discusses the reawakening interest of global investors in China, attributing it to increasing confidence in the housing market and corporate hiring. Both guests explore how geopolitical tensions shape investment strategies across different regions.
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Strong 2025 Rally Makes Year-End Gains Plausible
- Global equities have rallied strongly in 2025, making a further Santa Claus-style surge possible but hard to predict.
- Vasu Menon thinks 2026 will be challenging yet believes markets should finish higher by year-end 2026.
Valuations Favor Non-US Markets
- US equities look expensive on forward P ratios versus Asia, Japan and Europe, creating relative value elsewhere.
- Menon expects money to rotate out of the US into other regions, which could make US underperformance continue in 2026.
Fed Independence Is A Major 2026 Risk
- Political risk around Fed independence and US political developments could be a key market risk in 2026.
- Menon highlights Jerome Powell stepping down and how Trump's approach will shape perceptions of Fed independence.