![Joshua Crabb, head of Asia-Pacific equities at Robeco, speaks at a press briefing on the second-half 2026 global market outlook held at the Korea Financial Investment Education Institute in Yeouido, Seoul, on Tuesday. [Provided by Access Communications]](https://wimg.heraldcorp.com/news/cms/2026/07/14/news-p.v1.20260714.5734152dd65248cc990ca8deae8d7f72_P1.jpg)
Dutch global asset manager Robeco said Asian equity markets, including South Korea, offer greater investment appeal than the United States, arguing that valuations remain depressed despite improving corporate earnings and that a rerating is likely ahead.
Joshua Crabb, head of Asia-Pacific equities at Robeco, made the remarks Tuesday at a press briefing on the second-half 2026 global market outlook held at the Korea Financial Investment Education Institute in Yeouido, Seoul. "Asia-Pacific markets have reasonable valuations, solid corporate earnings and the competitive strength of being a core production hub for the global AI industry," Crabb said. "Even if the US equity valuation premium persists, a narrowing of the valuation gap between the two markets could allow Asian stocks to outperform US equities."
On South Korea specifically, Crabb said share buyback and cancellation programs by listed companies and the government's corporate value-up policy are enhancing the market's investment appeal. He cited earnings improvements driven by globally competitive industries — semiconductors, IT, shipbuilding, defense and robotics — and noted that South Korea has recorded the largest upward revision in earnings per share estimates among major Asia-Pacific markets as an additional positive.
Robeco had already viewed South Korea's value-up policy favorably last year, when Crabb said expanded dividends, share buybacks and other shareholder return measures, combined with legal and regulatory reforms, would accelerate corporate value enhancement on the Korean market. This time, he said improving corporate earnings on top of those factors have made South Korea an even more attractive investment destination.
On global equity markets broadly, Crabb said structural growth themes such as AI and electrification remain intact and corporate earnings are expected to stay on a solid trajectory. He cautioned, however, that investment is becoming increasingly concentrated in a small number of momentum-driven stocks, deepening market crowding. Should the AI-led rally broaden to other sectors and regions, he said non-US markets including Europe stand to benefit.
"In the United States, the likelihood of interest rate cuts has diminished due to a rebound in inflation and consumer sentiment has weakened, but the economy will continue to grow at a moderate pace and the corporate earnings outlook will remain solid," Crabb said. "Asia also faces headwinds from elevated energy prices, but beyond technology stocks there are diverse investment opportunities, making it an attractive market."
On Japan, Crabb said corporate governance reforms are driving expanded dividends and share buybacks, lifting shareholder value. He also highlighted improved corporate profitability through restructuring and a recovery in domestic construction driven by demand to replace aging infrastructure as new growth drivers. For the ASEAN region, he projected continued growth supported by strong demographics and high consumer spending, attractive returns in the infrastructure sector, and foreign direct investment inflows stemming from global supply chain diversification.
In India, Crabb said easing valuation pressures, cuts to the goods and services tax and stable oil prices should support improved corporate earnings and a rebound in the profit cycle. On China, he said a structural transition in response to geopolitical risks is underway and a full recovery will take time, but selective investment opportunities exist in certain undervalued stocks and a cost-efficient AI ecosystem.
hajun825@heraldcorp.com
