Global Market Outlook - The recovery in traditional cycle-related investments and consumption in non-US regions is expected to continue, although terminal consumption may recover slowly due to widening wealth disparities and increased uncertainty in economic, political, and employment prospects [2][6] - The Eurozone is maintaining its recovery, with domestic demand expected to replace net exports as the main contributor to economic growth in 2026 [10][11] - Southeast Asia is projected to outperform global growth, with Vietnam and Indonesia as key beneficiaries of industrial relocation and global supply chain diversification [2][17] Industry Outlook - Continued optimism in AI, electrification, and finance sectors, with high demand for overseas computing power expected to persist until the end of 2026 [3][9] - Capital expenditure in high-demand sectors like defense and AI infrastructure is anticipated to expand, while traditional cycle-related capital expenditure may recover at a slower pace due to terminal demand influences [8][9] - The consumer sector is expected to face challenges, with US consumption growth potentially cooling, while non-US regions may see marginal recovery [3][9] Regional Insights - In the Eurozone, private consumption is expected to grow, but high uncertainty may slow consumer confidence recovery [11][12] - Japan's economy is projected to grow above potential GDP, driven by expanding consumption and equipment investment [13][14] - Southeast Asia's average economic growth is forecasted at 4.2%, with specific countries like Vietnam and Indonesia leading in growth rates [17][18] Investment Recommendations - Focus on sectors with reasonable valuations and positive catalysts, such as pharmaceuticals and automotive [9][10] - In Japan, attention is drawn to sectors benefiting from external economic improvements, particularly electronics, machinery, and automotive [15][61] - In Southeast Asia, the real estate sector is expected to thrive in a low-interest-rate environment, while industrial and logistics sectors may benefit from effective tariff rates [18][19] Technology and AI - The demand for AI infrastructure is expected to remain robust, with significant capital expenditure growth anticipated in 2026 [27][28] - AI ASIC and GPU markets are projected to see substantial growth, driven by increased deployment by major cloud service providers [23][26] - Software and AI are expected to mutually enhance each other, with software playing a crucial role in AI application deployment [30][31] Consumer Goods - The food and beverage sector is expected to see a divergence in revenue growth, with leading companies likely to outperform smaller competitors [48][49] - The home care and personal care sectors may face short-term pressure due to slowing growth rates and cost challenges [50][51] - The luxury goods market is projected to recover in 2026, driven by consumer demand in key regions [52][54] Automotive Sector - Global passenger car sales are expected to see a slight increase, particularly in Europe due to new product cycles and improving labor markets [45][46] - European automakers are anticipated to accelerate their electric vehicle transitions, while US automakers stabilize after tariff impacts [46][47]