Morningstar indicated in its outlook report for the first quarter of 2026 that, supported by reasonable valuations, the Asian stock market is expected to continue rising in 2026. Analysts said that although there may be occasional pullbacks, it seems unlikely that there will be a sustained adjustment. Global spending on artificial intelligence is still a core driver of profits in the tech industry, and valuations of AI beneficiary stocks are generally still attractive. Morningstar expects the Federal Reserve to lower the federal funds rate, thereby driving down interest rates in Asia other than Japan. Japan, on the other hand, is likely to see a gradual increase in interest rates. The report added that the geopolitical situation remains a major risk, and the market may experience sudden fluctuations.

Morningstar indicated in its outlook report for the first quarter of 2026 that, supported by reasonable valuations, the Asian stock market is expected to continue rising in 2026. Analysts said that although there may be occasional pullbacks, it seems unlikely that there will be a sustained adjustment. Global spending on artificial intelligence is still a core driver of profits in the tech industry, and valuations of AI beneficiary stocks are generally still attractive. Morningstar expects the Federal Reserve to lower the federal funds rate, thereby driving down interest rates in Asia other than Japan. Japan, on the other hand, is likely to see a gradual increase in interest rates. The report added that the geopolitical situation remains a major risk, and the market may experience sudden fluctuations.