SINGAPORE, SG / ACCESS Newswire / September 19, 2025 / Asian equities extend multi-year momentum as investors position for anticipated US monetary easing; Nikkei 225 and Hang Seng Tech Index drive regional leadership; CME FedWatch futures guide allocations; semiconductors, artificial intelligence, banking shares, infrastructure, commodities, and cross-currency hedging form the core focus of institutional analysis.

Regional benchmarks across Asia sustain near-record levels as monetary policy expectations in the United States evolve towards easing. Merifund Capital Management underscores that its role is to observe and analyse these developments rather than to participate directly, with its assessment highlighting the confluence of technology strength, central-bank signalling and sector-specific divergences that are shaping current investor positioning.

Technology stocks remain at the forefront of regional performance. In Tokyo, the Nikkei 225 trades above 44,700, supported by chip-equipment and testing groups. Hong Kong's Hang Seng Index gains 1.2% while the Hang Seng Tech Index advances 4.2%, extending year-to-date gains beyond 40%. Alibaba is higher by 5.3% over the same period, while Baidu records a 16% single-day rise, its sharpest in three years. South Korea's KOSPI registers record levels, with SK Hynix advancing 1.97%. A key analyst at Merifund notes that such figures highlight the pivotal role of semiconductors and artificial intelligence in driving market leadership.

US labour-market and inflation indicators are shaping expectations for Federal Reserve action. Jobless claims stand at 233,000 for the week ending 3 August 2025, with non-farm payroll growth running below 100,000 for four consecutive months and the unemployment rate at 4.3%. August core CPI rises 0.3% month-on-month and 3.1% year-on-year. Futures markets suggest a 94-96% probability of a 25-basis point rate cut at the next Federal Reserve meeting, with three reductions priced before year-end.

Anthony Saunders, Director of Private Equity at Merifund Capital Management, explains that "policy normalisation rewards resilient capital structures and dependable free-cash-flow yields, so portfolio resilience takes precedence over headline momentum." Saunders adds that "investors remain focused on advanced foundry capacity, packaging and substrates, thermal management and automation software, as these form the foundation of artificial-intelligence infrastructure over the coming 12 months."

In Southeast Asia, banks benefit from expectations of rate alignment. Loan-growth assumptions improve for well-capitalised institutions, with asset-quality metrics supported by conservative provisioning. Infrastructure equities in Southeast Asia rise on forecasts of lower discount rates and stronger capital access. Saunders observes that "deposit stickiness, fee-income stability and loan-loss coverage ratios form the critical criteria for 2025, with liquidity management built on duration ladders and cash buffers calibrated to potential 25-100 basis point policy adjustments."

Energy markets diverge from equities, with Brent and WTI both fluctuating in the low USD 70s per barrel over the past month. Non-OPEC supply growth continues, and trade flows adjust as China and India expand their import share of Russian barrels. This divergence underscores the complexity of cross-asset allocation, where equities and commodities respond differently to the same macro forces.

While technology valuations are extended, Merifund stresses that earnings visibility, cash generation and governance discipline will dominate stock-specific outcomes for the remainder of 2025. Infrastructure companies with contracted revenues and banks with stable funding bases retain potential to translate monetary easing into durable performance. The firm makes clear that its role is to provide structured analysis of these dynamics, not to participate in the trades themselves.

Merifund Capital Management concludes that portfolio precision is essential in the current environment, where central-bank actions and sector-specific dynamics must be weighed simultaneously. The firm's analysis stresses liquidity, disciplined risk frameworks and selective exposure as the building blocks for sustainable strategies in the months ahead.

About Merifund Capital Management

Established in 2010, Merifund Capital Management Pte. Ltd. (UEN: 201024554E) is a Singapore-headquartered hedge-fund management firm specialising in traditional long-only asset and portfolio management, long/short equity, global macro, event-driven and systematic trading strategies. The firm employs derivatives to capture market opportunities while maintaining a consistent focus on capital preservation, liquidity and prudent risk management. ESG considerations are integrated into its process as part of a commitment to recognised global sustainability standards. Merifund serves accredited investors, family offices, foundations and endowments, and is expanding access to retail investors. For insights, visit https://merifund.com/insights. For media enquiries, contact Tao Yang at media@merifund.com or visit https://merifund.com.

Media Contact

Contact Person: Tao Yang

Company: Merifund Capital Management Pte. Ltd.

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Website: https://merifund.com

SOURCE: Merifund Capital Management Pte. Ltd.