Schroders global investment commentary stated that as Asia fully returns to normalcy after the COVID-19 pandemic, the region is expected to continue driving global economic growth in 2024, with this growth momentum believed to extend into 2025. Additionally, China's active promotion of economic growth, along with the moderate prospect of rate cuts in the United States and the relatively weak performance of the dollar, should help central banks in the region further ease their monetary policies. However, investors should be aware that regardless of the outcome, the U.S. presidential election will still be an important factor influencing Asian financial markets. Regarding the stock market, Schroders global mentioned that companies with clear profit prospects and stable cash flow are expected to be the main drivers of returns in the Asian market. Currently, many high-quality companies also offer attractive dividends to enhance defensive strategies in uncertain markets. Looking ahead, the firm remains optimistic about the overall fundamentals of the Asian bond market, especially after lower-quality corporations have been removed from bond indices following adjustments, particularly in the high-yield real estate sector. Additionally, recent fiscal stimulus measures in Mainland China and the downward trend in U.S. benchmark interest rates support Asian bonds. Schroders global believes that artificial intelligence (AI) and the broader information technology (IT) industry, corporate governance reforms, and attractive Asian credit market yields will be the three key investment themes in the future, with their crucial roles expected to last the remainder of 2024 and into 2025. Artificial intelligence and information technology: The IT industry in Asia is benefiting from a cyclical recovery and market optimism towards AI. As user demand stabilizes after the COVID-19 pandemic, inventories have mostly returned to pre-pandemic levels. These factors have laid a solid foundation for the revival of various sectors in the IT supply chain (including semiconductors and tech hardware) in 2025. Corporate governance reform: The Tokyo Stock Exchange (TSE) has called on companies to focus on sustainable growth and enhancing corporate value. As a result, Japanese companies have taken more comprehensive corporate governance and efficient capital allocation measures, bringing significant returns to the Japanese market. These reforms have also extended to other Asian markets, including South Korea and China. These two markets have respectively introduced their "Corporate Value-up Program" and new "Nine Measures" guidelines aimed at improving accessibility to capital markets and strengthening investor protection, with these measures expected to have far-reaching and lasting effects on the financial markets in both regions. Attractive Asian credit yields: The Asian credit market, particularly investment-grade credit, offers attractive risk-return characteristics. During the current rate-cutting cycle, credits issued by Australian and Japanese financial services companies are expected to continue performing well due to improving credit fundamentals. Similarly, sectors with relatively attractive total return, such as the Macau gaming industry and India's renewable energy sector, are also expected to continue displaying strong performance. Policy makers in Mainland China have recently introduced the largest monetary and liquidity stimulus package since the COVID-19 pandemic, surpassing market expectations in terms of scale and coverage. These policies have provided strong technical support to the stock market on the Mainland and led to a return of market sentiment. The firm believes that these measures will play a crucial role in alleviating short-term systemic risks and achieving the target of 5% GDP growth for the whole of 2024. If the Chinese government implements more robust fiscal stimulus measures in the coming months to stabilize the real estate market and boost market sentiment, the profit prospects of Mainland companies may significantly improve, especially in non-essential consumer industries, with this trend expected to continue into 2025. Schroders global suggests that investors may consider adopting a barbell strategy, diversifying between growth and income assets to balance market volatility and enhance overall returns.