BlackRock sees growing client push to diversify from US assets
More than 20 per cent of the firm's clients said in a recent survey that they were looking at trimming their exposure to US markets and the US dollar, said Elaine Wu, head of Asia-Pacific investment and portfolio solutions, at a media briefing in Hong Kong on Wednesday (Jul 2).
'There was a pretty good amount of people that were looking to Asia equity positioning,' said Wu, although she added that other clients remain interested in the US and those cutting back could return.
Her comments came just a week before the Jul 9 deadline for US tariffs, a potential flashpoint for global markets. US President Donald Trump has repeatedly spooked markets with on again-off again tariffs, fueling talk of a 'Sell America' trade that could herald a long-term shift away from US assets.
While the US will remain a core part of BlackRock's global portfolio, it is advising an incremental capital outlay for diversification by region, sector and asset classes, said Wu.
US equities exchange-traded funds listed in Asia-Pacific saw net selling in June for the first time since May 2023, while Asian equity ETFs got inflows over the last three months, with US$19 billion coming into China, Wu said.
European equity ETFs have seen inflows rising eight times to US$60 billion this year, putting them on track for the largest annual inflow since 2015, she added.
The asset manager's unit BlackRock Investment Institute remains positive on Japan and India, and neutral on China, Europe and the UK. BLOOMBERG
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
2 hours ago
- Straits Times
China's foreign minister dismisses European worries over rare earths
Sign up now: Get ST's newsletters delivered to your inbox BERLIN - China's foreign minister downplayed European worries over rare earth exports restrictions on Thursday, saying it was standard practise to control dual-use goods exports but that Europe's needs could be met if applications were submitted. Wang Yi was speaking in Berlin during a joint news conference with his German counterpart, on the second leg of a European tour seeking to lay the groundwork for a summit between EU and Chinese leaders later this month. "Rare earths have not been, are not, and will not be a problem between China and Europe, or between China and Germany," Wang said. "If legal applications are submitted, Europe's and Germany's normal needs can be met." China, which controls over 90% of global processing capacity for rare earths used in everything from automobiles to home appliances, had imposed restrictions in early April requiring exporters to obtain licenses from Beijing. German Foreign Minister Johann Wadephul said the restrictions were causing "great concern" and tarnishing China's image in Germany as a reliable trade partner. "We are on the path to finding sustainable joint solutions that will bring the necessary detente," he said. But when Wang was asked if an agreement could be reached on restrictions ahead of the EU-China summit, he said: "This is not an issue between China and Europe... controlling dual-use goods is standard practice. China and Germany both have the right to do so." Top stories Swipe. Select. Stay informed. Singapore Seller's stamp duty rates for private homes raised; holding period increased from 3 years to 4 Singapore 193ha of land off Changi to be reclaimed for aviation park; area reduced to save seagrass meadow Business More Singapore residents met CPF Required Retirement Sum when they turned 55 in 2024 Singapore PAP questions Pritam's interview with Malaysian podcast, WP says PAP opposing for the sake of opposing Sport 'Pedal to the metal' for next 2 years, says Singaporean powerlifter Farhanna Farid Singapore 1 in 4 appeals to waive HDB wait-out period for private home owners approved since Sept 2022 Sport A true fans' player – Liverpool supporters in Singapore pay tribute to late Diogo Jota Singapore Healthcare facility planned for site of Ang Mo Kio Public Library after it moves to AMK Hub The Chinese Ministry of Commerce already has a fast-track procedure in place to ensure that normal approvals are processed as quickly as possible, he added. Wang came to Berlin from Brussels, where he met with EU officials including the bloc's high representative for foreign policy Kaja Kallas, who also urged Wang to end rare earth export restrictions. Wadephul said the two foreign ministers also discussed Russia's invasion of Ukraine, Taiwan and the crisis in the Middle East. "We believe China can play a constructive role in relation to Iran," he said. REUTERS
Straits Times
2 hours ago
- Straits Times
‘Doubts' over US support boost Ukraine's need for EU cooperation, Zelensky says
Sign up now: Get ST's newsletters delivered to your inbox Ukrainian President Volodymyr Zelensky (left) is welcomed to Denmark on July 3 by Denmark's King Frederik and Danish Prime Minister Mette Frederiksen. AARHUS, Denmark - Doubts over US military aid to Ukraine reinforce the need for increased cooperation with the EU and Nato, Ukrainian President Volodymyr Zelensky said on July 3, as he met European Union leaders in Denmark. Mr Zelensky's comments came after Washington's decision to pause some weapons shipments to Kyiv. 'Now, when there are doubts about continued US support for Europe, it's even more important to strengthen our cooperation and coordination through the EU, Nato and also in our direct relations,' Mr Zelensky said, on the sidelines of meetings with Danish and EU leaders in Aarhus, as Denmark takes over the EU's rotating presidency. Earlier on July 3, European Commission president Ursula von der Leyen said the US decision was 'a clear message to step up our own support, ramping up our European defence capacities, not only at the level of the European Union, but at the continental level.' Dr Von der Leyen on July 3 held talks in Aarhus with Mr Zelensky, Danish Prime Minister Mette Frederiksen and the president of the European Council Antonio Costa. Kyiv said a call was being prepared between Mr Zelensky and US President Donald Trump, possibly for July 4. Mr Trump was, meanwhile, due to speak with Russian President Vladimir Putin later on July 3. Top stories Swipe. Select. Stay informed. Singapore Seller's stamp duty rates for private homes raised; holding period increased from 3 years to 4 Singapore 193ha of land off Changi to be reclaimed for aviation park; area reduced to save seagrass meadow Business More Singapore residents met CPF Required Retirement Sum when they turned 55 in 2024 Singapore PAP questions Pritam's interview with Malaysian podcast, WP says PAP opposing for the sake of opposing Sport 'Pedal to the metal' for next 2 years, says Singaporean powerlifter Farhanna Farid Singapore 1 in 4 appeals to waive HDB wait-out period for private home owners approved since Sept 2022 Sport A true fans' player – Liverpool supporters in Singapore pay tribute to late Diogo Jota Singapore Healthcare facility planned for site of Ang Mo Kio Public Library after it moves to AMK Hub 'I don't know that they have a lot of common ideas, common topics to talk about because they are different people,' Mr Zelensky said, stressing that Kyiv had 'supported from the very beginning the idea of President Trump's unconditional ceasefire.' The Danish prime minister stressed the importance of boosting European security. 'I see no sign that Putin wants peace, and I do not trust for a second that Putin intends to stop with Ukraine. Therefore we have to put Ukraine in the best possible position,' she said. Russian strikes have intensified in the absence of progress on resolving the conflict, and the US moves have severely hampered Kyiv, which has relied on Western military support since Russia launched its full-scale invasion in February 2022. 'Ukraine is essential to Europe's security. Our contribution to Ukraine is also a protection of our freedom,' Ms Frederiksen said. She has vowed to push for Ukraine's membership in the EU during her country's presidency of the bloc. 'Ukraine belongs in the European Union. It is in both Denmark's and Europe's interest. Therefore, the Danish EU presidency will do everything we can to help Ukraine on their way towards EU membership.' Ukraine launched its bid to become an EU member in the aftermath of Russia's 2022 invasion, but it has stalled because of opposition from Hungary. Mr Zelensky said on July 3 on X that he was ready to open three accession chapters with the EU, 'but political blockages remain, purely political.' Working 'behind the scenes' Denmark's Europe minister Marie Bjerre told reporters earlier on July 3 that Ukraine's EU membership bid was 'very important for us'. 'We are still trying to lift the resistance from Hungary,' she said. Hungarian Prime Minister Viktor Orban has said that Ukraine's membership of the EU would 'ruin' the 27-nation bloc. Using its veto power, Hungary has effectively frozen the accession process. Ukraine has insisted it still hopes Budapest can be brought around, claiming intensive work is being done 'behind the scenes'. US President Donald Trump has effectively nixed Ukraine's attempts to join the Nato military alliance. As Mr Zelensky arrived in Denmark, he announced that Ukraine has signed a deal with US company American company Swift Beat to produce drones for Ukraine's military. In a post to X, Mr Zelensky said the company 'foresees hundreds of thousands of drones this year alone, with the potential to significantly scale up production in the coming year.' AFP
CNA
3 hours ago
- CNA
Asia First - Thu 3 Jul 2025
02:25:20 Min From the opening bell across markets in Southeast Asia and China, to the biggest business interviews and top financial stories, tune in to Asia First to kick-start your business day.
