2026 Asia Pulse Survey: AI Supercycle shapes expectations

The AI Supercycle is pushing Asian investors toward much higher return expectations while leaving their risk tolerance largely unchanged.

• Investors in Hong Kong, Japan, Singapore, South Korea, and Taiwan now expect long-term returns of 17.3% above inflation, up from 10.3% 18 months earlier, a 68% increase that may reflect extrapolation of recent gains.
• The survey reveals a conflict between ambition and caution: 85% want the opportunity to outperform the market, but 76% would choose safety over performance if forced to choose.
• AI is already integrated into investor behavior, with 76% saying it is part of their daily lives and 64% trusting it with investment decisions.
• Geographic diversification is gaining importance as investors confront concentration and geopolitical risks; 88% say it matters more today than it did five years ago.
• Despite confidence in AI, investors still value human guidance, especially financial planning, cited by 61%, and retirement income planning, cited by 53%.

Takeaway: Financial professionals must help investors reconcile ambitious, potentially unrealistic return targets with their aversion to losses, while using geographic diversification and personalized advice to address market, geopolitical, and long-term planning risks.