Asia’s Capex Boom Goes Beyond AI

Summary

Chetan Ahya discusses Asia's industrial super cycle driven by capex in AI, energy, defense, and industrial sectors. He forecasts total investment rising from $11 trillion to $16 trillion by 2030. He identifies China, Japan, Korea, Taiwan, India, Australia, and Indonesia as key beneficiaries.

• Asia is entering an industrial super cycle with sustained capex growth across multiple sectors.
• Total investment in Asia could rise to $16 trillion by 2030, growing 7% annually.
• AI, energy, defense, and broader industrial sectors are the main drivers.
• China, Japan, Korea, and Taiwan are the biggest beneficiaries, meeting both domestic and export demand.
• India benefits primarily from its own domestic capex cycle.
• Australia and Indonesia benefit from higher industrial commodity prices.
• Industrial production in Asia is nearing a 4-year high, and capital goods imports are growing 27% year-over-year.
• The capex cycle is expected to filter through to jobs, income, and consumer growth.