Goldman Sachs executives estimate almost $100 billion in investments to countries other than China over the last nine months, thus attracting a wave of new capital this year. The trend emphasizes a larger attempt by international investors to diversify exposure across rapidly expanding countries in the region and cut dependency on American assets.
Speaking at the Milken Institute Asia Summit 2025 in Singapore, Goldman Sachs president for Asia-Pacific except Japan, Kevin Sneader, described the change. He saw capital’s movement not as a retreat from the United States but rather as a rebalancing of portfolios toward possibilities in Asian markets. Simultaneously, Sneader warned that some of the inflow originates from hedge funds and other short-term participants; hence, the longevity of these promises is still unknown.
With robust corporate reforms and a weaker yen that has made its equity market more appealing, Japan has come to be among the major beneficiaries of fresh investments like the Nikkei 225 index . Conversely, domestic investors have mostly propelled China’s latest stock market surge, with outside participants still unwilling to return in large numbers due to legal and geopolitical issues.
Sneader observed that the demand for Asian assets has been most evident in industries including consumer spending, industrials, and technology. Healthcare has become more intriguing in private markets since worldwide demand for medical innovation and services is expanding. Singapore’s state-backed investment company, Temasek International, echoed the evaluation that capital flows are changing. CEO Dilhan Pillay highlighted that globalization is resetting: efficiency is no longer the only objective as governments and businesses give resilience first place along supply chains, even at a greater price.
He highlighted the disruptive capacity of artificial intelligence as well, noting how it is transforming politics and business worldwide. Highlighting Asia’s rising influence in drawing worldwide wealth, Temasek stated that the worth of its portfolio increased 11.6% in the most recent financial year to S$434 billion ($340 billion).