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ETMarkets.com Technology, public policy, and demographics are emerging as the three most powerful forces shaping global equity markets — and Asia stands to gain the most, according to Vikas Pershad, Portfolio Manager for Asia Equities at M&G Investments.Pershad said the world is entering a new market phase where “tech and policy have become inseparable drivers of wealth creation.” Speaking to ET Now, he noted that while fears of an AI bubble and valuation froth exist, structural demand for semiconductors, memory, and clean energy is likely to sustain the long-term equity uptrend.“Markets will keep moving higher because they have to — they remain the best tool for wealth preservation and growth,” Pershad said, citing ongoing corporate reforms in Japan, South Korea’s value-up program, and China’s re-embrace of entrepreneurship as long-term positives.India’s position strengthening amid global dispersionWhile developed markets like the US have seen concentrated gains in Big Tech, Pershad said India’s setup into 2026 looks increasingly attractive. “The dispersion between India and emerging markets is narrowing, and India’s macro and policy tailwinds are strong,” he added.He emphasized that active stock-picking will define this phase, as investors rotate between countries and sectors. “We were underweight India earlier this year due to better near-term opportunities in Japan, Korea, and China, but India’s growth outlook is again turning favorable.”Live EventsYou Might Also Like:Defence, tech and Asian markets emerge as new beacons of growth: Andrew FrerisAI hardware, not software, will drive next global upswingPershad expects AI hardware — semiconductors, memory, and power infrastructure — to be the epicenter of the next global investment cycle.“The current chip and power architectures cannot sustain the exponential rise in AI and data needs. That’s where the next trillion-dollar opportunities lie,” he said, noting that memory and equipment makers in Japan, Germany, South Korea, and the US are poised to benefit.He also warned that “software and IT services will face margin and relevance pressures” as automation and AI commoditize traditional coding work.China’s silent rise: From copycat to global innovatorContrary to western narratives, Pershad argued that China is evolving from a fast follower to a genuine innovator across sectors like EVs, robotics, and consumer electronics.You Might Also Like:India's textiles, gems & jewellery, marine exports see strong growth in non-US markets“China now controls about 40% of global semiconductor manufacturing equipment spend, up from 5% a decade ago,” he said. “Its companies are building their own chip standards and challenging Nvidia and others.”He pointed to BYD’s success in electric vehicles and Huawei’s advances in high-end devices as proof that Chinese innovation is reshaping global supply chains. “We’re seeing Chinese firms dominate not just on cost, but on design and tech leadership.”Key TakeawaysTech, public policy, and demographics to drive global equity growth.AI hardware cycle will create the next wave of global winners.China’s shift to self-reliance is a long-term game-changer.India’s equity market setup for 2026 looks increasingly strong.Active stock-picking across Asia offers the best alpha opportunities.Add as a Reliable and Trusted News Source Add Now! (You can now subscribe to our ETMarkets WhatsApp channel) Read More News onVikas PershadM&G InvestmentsGlobal equity market outlookAI hardware investment opportunitiesChina innovation and EV growthIndia market outlook 2026Global tech policy trendsAsia stock market forecastIndia’s equity outlook 2026: sectors to watch (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. 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