Lee Yeon-woo is a financial journalist at The Korea Times. Her wide range of reporting includes policies, macroeconomics, stock market, companies and even crypto. She is passionate about connecting the dots in Korean finance and making it easier for foreign nationals to understand. Based on her previous experience as a national reporter, she also has a keen interest in social issues within the sector, including gender equality and ESG. Your tips and insights are always appreciated. You can send them to yanu@koreatimes.co.kr.
Great rebalancing begins from overvalued US markets to Asia: Robeco
Joshua Crabb, head of Asia-Pacific equities at Robeco, speaks during a press conference at the headquarters of the Federation of Korean Industries in Seoul, Thursday. Courtesy of Robeco
By Lee Yeon-woo
Korea's Corporate Value-up Program to have long-term impact
In April, U.S. equity markets experienced a historic plunge due to uncertainties surrounding President Donald Trump's tariff policies. As investors' risk appetites revived, the market bounced back strongly, with the S&P 500 and Nasdaq repeatedly hitting new highs.
However, concerns about the U.S. market overvaluation persist, leading investors to ask: Is this our second chance to sell U.S. equities and diversify our portfolios?
Joshua Crabb, head of Asia-Pacific Equities at Robeco, believes the answer is yes. At a press briefing Thursday, he said the dollar is weak and U.S. debt has reached a concerning level. Additionally, the Trump administration is attempting to impose new taxes on foreign investors.
"The movement of capital has already begun," Crabb added.
According to BofA Research, over the past 12 months, the Asia-Pacific region (excluding Japan) saw a capital inflow of $129.8 billion. In contrast, the U.S. recorded $42.5 billion in withdrawals.
Crabb believes one of the long-term beneficiaries will be the Asian market, which has remained relatively quiet since 2010.
Based on the price-to-book ratio comparison between the U.S. and the broader Asia-Pacific market, measured by the MSCI index, Asian markets are currently valued at one-third the price of their U.S. counterparts.
He said the market's strength lies in the differences between countries, creating alpha opportunities in individual markets. For example, India and the ASEAN region offer strong growth potential, while Korea and Japan present opportunities for shareholder return strategies.
Crabb also expressed optimism about Korea's value-up initiatives, including the recent amendments to the Commercial Act. He noted that such policies could lay the groundwork for more efficient capital allocation and attract long-term investment.
Among Korea’s industrial sectors, shipbuilding, defense, nuclear power and electricity were identified as having strong growth potential.
"Asia has phenomenal long-term growth," he said.
Established in 1929, Robeco is a global asset management company operating in 13 countries. As of July, its total assets under management amount to $237 billion. The firm has focused on sustainable investing since 1995.