We prefer North Asia for AI hardware theme, China is a stock picker's market: Eastspring Investments

• US equity market showing broad recovery beyond tech, with manufacturing rebounding and over 80% of companies reporting positive Q2 EPS growth.
• North Asia, particularly South Korea, is preferred for AI hardware due to cheaper valuations (KOSPI shy of 5x) and strong expected earnings growth (60%).
• China's AI/tech landscape is a 'stock picker's market' due to its K-shaped recovery and domestic focus, requiring careful selection despite overall macro challenges.

Eastspring Investments is constructive on global equities, highlighting the US market's broad recovery and strong Q2 earnings. For the AI hardware theme, North Asia (especially South Korea) is preferred due to attractive valuations and robust earnings growth. China is viewed as a stock picker's market given its K-shaped recovery and domestic AI focus.