Asia Reconsiders U.S. Assets as ‘Sell America’ Sentiment Grows

Illustration: Glenn Harvey

Asia’s wealthy investors and policymakers are rethinking long-standing confidence in U.S. markets. Driven by geopolitical tensions, unpredictable policy shifts, and trade uncertainty, many are reducing exposure to American equities and Treasuries.

A growing repositioning is underway—a recalibration from dogged loyalty to diversified regional portfolios.

Why U.S. Exposure Is Being Reassessed

First, unpredictable policies—especially tariffs under President Trump—have shaken investor trust. Wealth managers note that portfolio allocations to U.S. assets are seen as riskier than before.

Next, volatile economic data and changes at institutions like the Bureau of Labor Statistics have sparked skepticism about U.S. rate policy and growth forecasts. U.S. job revisions and political drama have unnerved many global investors.

Also, Asia’s internal resilience is improving. Surging trade within the region, stable currencies, and robust current account surpluses are boosting confidence in local opportunities.

Who’s Leading the Shift

Moreover, dozens of family offices and private advisers in Asia—especially in Hong Kong and mainland China—are trimming or exiting US positions. Some reduced exposure by 60%, shifting capital to Asia, Europe, or safe assets like gold.

Also, institutional investors are reallocating quietly. Fund flows into U.S. equities have turned negative over multiple weeks, while billions are being deployed into Asian ETFs.

Furthermore, many Asian ultra‑wealthy families, often battle-tested through past financial crises, are now considering reallocating 20–30% of their U.S. holdings.

Markets Reflect Region’s Shift

Consequently, Asian equity markets have outperformed U.S. benchmarks in 2025. Hong Kong’s Hang Seng Index is up over 13% while the S&P 500 is down roughly 3%.

Also, Asian currencies like the Taiwanese dollar and Singapore dollar have strengthened, reversing long-term trends. This reflects capital flowing back into regional markets.

Further, investors are boosting Asia‑Pacific bond allocations. Local currency debt is increasingly seen as an alternative to U.S. Treasuries, especially amid concerns of dollar depreciation.

What’s Driving the Pivot?

In part, regional diversification makes strategic sense. Asia now commands massive current account surpluses and holds over $7 trillion in U.S. assets, but lacks equally liquid alternatives. That makes de‑dollarization challenging—but growing.

Moreover, erosion of "U.S. exceptionalism" signals a structural shift. Investors increasingly see the U.S as less reliable than regional peers amid global tensions.

Also, uncertainty around upcoming U.S.–China trade talks and trade policy reversals is fueling caution. Investors are hedging against policy volatility by reallocating to more stable or familiar markets.

Barriers to a Full Exit

Nevertheless, exiting U.S. assets isn't easy. Asian economies run persistent dollar surpluses and lack equally large and liquid domestic capital markets. That makes reducing U.S. allocations technically difficult.

Also, many investors remain wary about overexposure to Chinese markets due to recent regulatory crackdowns and political instability. That makes full repatriation of capital a cautious rather than enthusiastic choice.

Long-Term Implications

Looking ahead, a sustained shift could reshape global capital flows. Europe and Asia may attract significantly greater investment, challenging U.S. market dominance.

Also, rising appetite for local-currency bonds and equities may support regional economic independence. That could redefine financial hubs and reduce reliance on dollar‑denominated instruments.

Furthermore, major fund managers are responding, with outflows from U.S. equity funds reaching tens of billions and matching inflows to Asian markets.

Final Thoughts

Overall, Asia’s elite investors are signaling a new direction: less blind trust in U.S. markets, more focus on regional diversification. Rising trade risks, sovereign uncertainty, and the weakening dollar are reshaping portfolios.

Asia may still need U.S. assets—but sentiment is shifting from passive appetite to selective scrutiny. For many investors, the future looks less American-centric—and more multipolar.