East Asia Alliance Investment wrote that in terms of stocks, the bank remains optimistic about the technology sector. Artificial intelligence has long-term growth potential, and the bank is particularly bullish on companies listed in China, Taiwan, and South Korea. Additionally, the bank prefers Chinese value stocks, including energy stocks. Certain Australian energy and material stocks are also attractive. For bonds, East Asia Alliance Investment maintains a constructive stance, as they believe that information asymmetry will continue to shrink and remain tight until the end of the year. The bank continues to be positive on the Chinese technology, media, and telecommunications industries, as interest differentials in these industries continue to improve. Korean investment-grade financial bonds are also favored by the team. East Asia Alliance Investment pointed out that the Hong Kong and Chinese stock markets recorded their best three-month returns since the restart of the economy at the end of 2022, benefiting from signs of improvement in Chinese growth, including first-quarter GDP higher than market expectations. Meanwhile, China is reforming its capital markets to stimulate investor sentiment, with measures including stricter listing requirements and encouraging dividends to lower risks, increase transparency, and enhance corporate governance, thereby revitalizing the capital market. In April, the internet and real estate sectors saw significant increases, with the former benefiting from industry stock buybacks and domestic property stocks being driven by expectations of favorable measures. Recently, authorities relaxed property purchase restrictions and housing upgrade policies in multiple cities, including Beijing, Shanghai, and Shenzhen, in hopes of further stimulating the real estate market. East Asia Alliance Investment stated that investors postponed expectations of a US interest rate cut, as the Federal Reserve indicated that despite higher-than-expected inflation, they have no intention to raise rates. With global interest rates peaking, Asia and Chinese value stocks are favored due to their attractive valuations and yields compared to global peers. Chinese oil and energy stocks have sound fundamentals and can hedge geopolitical risks. Australia has a stable political and economic environment and is a major commodity export country, with many local energy companies having strong balance sheets and cash flows, making Australian stocks have potential value. Furthermore, East Asia Alliance Investment remains optimistic about the technology sector. Artificial intelligence is developing rapidly, driving the growth of related industries, especially semiconductors. Taiwanese semiconductor giants recently announced a year-on-year surge of around 60% in April sales, mainly due to increased demand for AI semiconductors and the global recovery of the smartphone industry. In addition, the bank still sees potential in the Indian stock market due to structural growth potential driven by infrastructure investments, the middle class, and labor force. However, they will closely monitor election progress and its impact on market sentiment and fund flows. As for fixed income, although Asian investment-grade bonds were initially affected by escalating tensions in the Middle East, they managed to recover in April with overall credit spreads narrowing. Additionally, credit spreads have been continuously narrowing since the beginning of the year, prompting profit-taking, indicating a healthy level, and as selling pressure eases, the market stabilized by the end of the month. With credit spreads hovering at narrow levels, East Asia Alliance Investment expects investors to maintain a defensive stance and adopt a wait-and-see approach to further confirm the future actions of the Federal Reserve and inflation trends. The continued low issuance of new Asian investment-grade bonds, along with ongoing buyback activities, provide technical support to the market. Currently, the bank expects the market to remain volatile within a range until interest rate fluctuations intensify again.