Baillie Gifford Investment Asia has released its outlook for the Asian stock market in 2025, stating that the strong economic momentum in Asia provides significant profit growth potential for companies in major markets and industries. They are optimistic about the artificial intelligence (AI) related technology industries in China, Taiwan, and South Korea, as well as the banking sector in India. Additionally, the firm cautiously views the Chinese market, believing that certain industries will present investment opportunities with sustained competitive valuations, but stressing the importance of focusing on the fundamentals for investors seeking opportunities through a bottom-up strategy. In the technology sector in China, Taiwan, and South Korea, Baillie Gifford favors Taiwanese companies, considering them more agile and able to provide more suitable AI solutions to customers. In the AI field, the firm prefers AI server component suppliers and leading Application-Specific Integrated Circuit (ASIC) IP suppliers. Although stocks in ASEAN countries are seen as defensive investments, their valuations are not particularly cheap, and, combined with the strength of the US dollar, emerging Asian currencies may face exchange rate risks. Additionally, weak loan growth is a concern for businesses in the ASEAN region. Baillie Gifford notes that India's rapid economic growth is attracting increasing foreign investment, with funds raised through the stock market providing stability to the economy and offering excellent investment opportunities in the banking sector and digital infrastructure.