BNP Paribas AM: Most Asian Investors Prefer Europe Over the US
Europe is gaining attention amongst Asian investors who are attracted by the region’s positive outlook, most notably due to fiscal expansion, according to a survey by BNP Paribas Asset Management.
More than three-quarters (76 percent) of investors in Asia plan to increase their allocation to Europe over the next 12 months, according to a survey by BNP Paribas Asset Management entitled «Europe Rising: The 2025 Asia Pacific (APAC) Investor Pulse».
Within the region, Australia leads the trend at 87 percent, followed by Hong Kong (83 percent) and Singapore (80 percent). More interestingly, 60 percent of respondents now view Europe as a more attractive investment destination than the US.
80 percent believe that the EU’s fiscal expansion will enhance Europe’s long-term competitiveness with 80 percent also agreeing that companies in the region delivered solid performance in the first half of 2025 and will continue to do so. 38 percent cited attractive valuations as a reason to consider European investment.
Preferred Asset Classes
In terms of accessing Europe, 24 percent named public equities as the preferred asset class while investment grade corporate bonds ranked second. 67 percent also plan to increase their allocations to European private credit. On existing exposure, 74 percent already hold more than 11 percent of their portfolios in European assets.
«After years of US equity dominance, Europe is re-entering the global spotlight – not as a cyclical trade, but as a structurally redefined investment destination,» commented Mike Nikou, APAC CEO of BNP Paribas Asset Management. «Against a backdrop of attractive valuations, monetary policy clarity, and strategic public spending, European markets are being reassessed by professional investors across Asia Pacific.»
The report was based on survey responses in August and September 2025 from 300 professional investors, including institutional investors, fund selectors, investment consultants and private banking advisors, across four key APAC markets – Australia, Japan, Hong Kong and Singapore.
