Many western countries have been increasingly motivated to strengthen their domestic industries, especially in renewable energy and semiconductors, which will have trade implications for Asia's future, the firm said in a note. On the back of growing US trade restrictions, China is diversifying its export destinations and increasing market shares in ASEAN and Latin America.

In particular, Indonesia is drawing on its large reserves of nickel and cobalt to develop an integrated electric vehicle (EV) supply chain, Eastspring added. The country aims to become one of the world’s top three producers of EV batteries by 2027. India and Indonesia have made significant progress since 2013, when they were part of the "Fragile Five," a term coined to describe economies that were heavily reliant on volatile foreign investments to finance their growth.

While trade remains important for the region, Asia’s rapidly growing middle class has made domestic consumption an increasingly important growth driver, especially for India and the southeast Asian economies, Eastspring said. India is now one of the fastest growing economies, led by advances in digitalisation, rising consumption potential, and energy transition initiatives. It is expected to be the region’s second largest growth driver in 2024.

Digital technologies have also enabled new forms of cross-border transactions and e-commerce in Asia. By 2022, Eastspring pointed out that Asia accounted for 51 per cent of global e-commerce sales, almost double from 2014. This growth has led to the emergence of more Asian-based platform and e-commerce players in recent years.

Historically a fast-growing region, Asia is still expected to contribute to 60 per cent of global growth by 2030. Its growth model will continue to evolve as it did over the last 30 years. Asia’s changing economic landscape has also produced disruptors across different sectors, presenting investors with greater choice to tap into the region’s growth.

Given the expansion of digital technologies, the rising importance of sustainability and the increasing complexities of geopolitics, Eastspring sees accelerating growth in the region. More than ever, investors will need experience, agility, and deep local insights to invest in a dynamic Asia.

Other wealth managers are also optimistic about the outlook for Asian equities. Yoojeong Oh, investment director at abrdn, sees investment opportunities in Taiwan, Singapore, Australia, and South Korea in particular, driven by digitalisation, high tech firms and a strong focus on artificial intelligence. HSBC Global Private Banking maintains its overweight positions in Japan, India and South Korea, where it sees the best opportunities for tapping into Asia’s structural growth themes. Björn Jesch, global chief investment officer at DWS, also believes that India will remain the growth champion in Asia. See more commentary here and here.