Asia Remains Under-Invested Despite Strong Growth and Low Valuations, DBS Says

Asia remains under-invested despite strong fundamentals and attractive valuations, according to DBS’ chief investment office.

Senior strategist Daryl Ho said lingering caution after years of weak performance has kept investors on the sidelines even as opportunities strengthen across dividend and growth assets.

Dividend yields in Singapore and China hover around 5%–6%, while technology earnings in Asia excluding Japan are forecast to grow in the mid-20% range in FY2026.

Ho noted that Asian technology firms such as Alibaba, Baidu and BYD trade at less than 20 times earnings, far below US peers including Amazon, Google and Tesla.

He said DBS favours mid-duration bonds and remains positive on gold, citing central-bank buying and resilience despite high US rates and a strong dollar.