Middle East developments - Implications for Asian equities and fixed income

3 March 2026

The Asian Equities and Asian Fixed Income team assess the recent Middle East developments and implications for Asia asset classes.

Implications for Asian equities

Key points:

Energy import‑heavy equity markets (e.g. India, the Philippines, Taiwan, Korea) may face near‑term pressure, as higher oil prices could lift input costs, weigh on corporate margins, and delay expected monetary easing, particularly for transport, airlines, logistics, financials, and real estate sectors.
Chinese mainland’s equity impact may be more sentiment‑driven than fundamental, as strategic oil inventories could buffer near‑term supply risks.
Relative equity resilience may emerge in energy‑producing economies (e.g., Malaysia, Indonesia), while broader Asian equities may remain sensitive to the duration of elevated oil prices and any disruption to shipping through the Strait of Hormuz, which could raise logistics costs and amplify volatility.

Implications for Asian fixed income

Key points:

Higher oil prices may pose inflation and growth challenges for Asia as many economies are net energy importers, which could influence interest rates, currencies, and market sentiment.
Higher‑yielding bond markets are more sensitive to oil prices and currency weakness, while lower‑yielding markets have seen some safe‑haven support.
While underlying fundamentals for many Asian Investment Grade and corporate issuers appear broadly intact, credit markets may see near-term valuation adjustments, especially in higher-risk segments.

Download full PDF

Key takeaways from Chinese mainland NPC meeting

The annual meeting of Chinese mainland’s National People’s Congress (NPC) is concluding this week. The China equity team shares its latest views on key policy developments and analyses the main growth engines supporting high quality growth.

Read more
Latest asset allocation views amid latest Middle East developments

Against a backdrop of elevated uncertainty, the Multi Asset Strategy Team (MAST) summarizes key market moves, and the potential cross-asset implications.

Read more
Latest asset allocation views for Asia Q1 2026

Three key global themes for the first quarter: Liquidity and stimulus set the stage for 2026; AI remains a structural growth driver; Accelerating growth may favour diversification

Read more

See all

What does short-term oil price volatility mean for pension scheme members?

Recent geopolitical tensions involving Iran have renewed focus on oil prices and their potential economic and market effects. How can retirement savers navigate short term oil price volatility?

Read more
More years, better living

They say that 60 is the new 50, so if you are nearing the next chapter of life, why not make the most out of your golden years by embracing new experiences, pursuing passions and enjoying life to the fullest?

Read more
Harness lower-risk funds to navigate uncertainty and volatility

Market uncertainties are accelerating recently, this article will discuss how employees navigate the turbulent conditions by making good use of lower-risk fund

Read more

See all

About Us

Our funds

Services

Contact us

Contact us

Privacy Policy Customer Privacy Policy Terms of Use Disclaimer

Unit Investment Trust Funds are NOT DEPOSIT products and are not insured by the Philippine Deposit Insurance Corporation (PDIC) or by Manulife Investment Management and Trust Corporation, its parent company or its affiliates. These products have no guaranteed returns/yields. The performances of the funds and their underlying securities are not guaranteed, and the value of funds may fluctuate and could be less than the capital invested. Any loss/income arising from market fluctuations and price volatility, even if invested in government securities, is for the account of the client/investor. Past performance, when presented, is purely for reference purposes and is not indicative of similar future result. Manulife Investment Management and Trust Corporation is not liable for losses except for gross negligence, willful fraud or bad faith of its officers, employees, or authorized representatives. Prospective investors are advised to read the Declaration of Trust for the Fund which may be obtained from the office of the Trustee, consult a Financial Advisor/Wealth Specialist and take the Client Suitability Assessment to determine the suitable Fund before proceeding with the investment.

Manulife Investment Management and Trust Corporation, its products and services are regulated and governed by the Bangko Sentral ng Pilipinas (BSP) with telephone number (02) 8-708-7087 and email address consumeraffairs@bsp.gov.ph. For inquiries or complaints relating to our products and services, you may call our Customer Care Hotline at (02) 8-884-7000 or send an email to phtrust@manulife.com. To know your rights under BSP Circular No. 1160 (Regulations on Financial Consumer Protection), please access a copy at the BSP website (www.bsp.gov.ph).

Manulife, Manulife Investment Management, and Manulife Investment Management & Block Design are trademarks of The Manufacturers Life Insurance Company and are used by it, and by its affiliates under license.