Asia-Pacific investors brace for market correction in 2026 amid tech bubble fears: survey

Core Insights - A majority of Asia-Pacific institutional investors anticipate a market correction in 2026, primarily due to concerns over a potential tech bubble, geopolitical tensions, and recession [1][2]. Group 1: Investor Sentiment - 74% of institutional investors globally believe a correction is overdue, with 80% in the Asia-Pacific region sharing this sentiment [2]. - Among Asia-Pacific investors, 48% cite the potential for a tech bubble as their top concern, followed by geopolitical shocks at 45% and recession at 40% [3]. - The sentiment indicates that markets may face challenges in the upcoming year, as noted by Natixis Investment Managers [5]. Group 2: Investment Strategies - Approximately 60% of investors in the Asia-Pacific region plan to increase their allocations to equities within their home region to diversify away from the US market [6]. - Only 25% of global investors intend to increase their allocations to US equities, compared to 44% for Asia-Pacific equities and 42% for emerging market equities [8]. Group 3: Market Outlook - Views on the Chinese market are cautious, with three-quarters of global and Asia-Pacific investors indicating that slow growth is the "new normal." However, 70% of Asia-Pacific investors believe China can withstand a prolonged trade war with the US [9].