The ongoing conflict in the Middle East has led to heightened market volatility in recent weeks, driving uncertainty around energy prices, inflation and global growth; and, amid this backdrop, more mature investors in Asia-Pacific are staying focused on long-term outcomes, whereas others tend to temporarily stop investing, according to a recent study.

One-fifth ( 20% ) of Asia-Pacific investors say market fluctuations do not affect their investment behaviour, as they remain committed to their long-term strategy despite short-term movements; and this is particularly the case for investors aged 55 or above ( 24% ), underlining the relative resilience of older investors, finds global asset manager Fidelity International’s Be Invested Study, which surveyed over 13,000 retail investors across Asia-Pacific and Europe.

At the same time, a higher proportion of investors are taking a more cautious approach: 25% indicate that they have temporarily stopped investing during periods of volatility, especially for investors in Hong Kong ( 35% ), Taiwan ( 28% ) and Japan ( 26% ).

A further 17% of Asia-Pacific investors seek advice before making changes, especially in Australia ( 22% ), mainland China ( 21% ) and Singapore ( 20% ). Meanwhile, 8% report selling some of their investments in affected sectors right away.

Interestingly, some Asia-Pacific investors, the study reveals, are leaning into volatility as an opportunity, with 15% actively looking for buying opportunities in sectors or regions impacted by market movements, and 15% allocating capital into other sectors that they consider unaffected by the volatility. This is even more pronounced for investors in Singapore, with 18% and 20% respectively using volatility to allocate more capital.

This divergence of investor behaviour, the study notes, comes amid a more complex global backdrop, where geopolitical risks and supply disruptions continue to contribute to short-term market uncertainty.

Home bias remains, but diversification key

There is a continued preference for domestic investments with Asia-Pacific investors allocating a significant share of their portfolios to their home market ( 61% ), higher than the average for global investors ( 56% ) and European investors ( 52% ).

While this reflects familiarity and confidence in local markets, it also underlines a potential gap in geographic diversification as a way of managing risk and capturing broader opportunities.

Chart 1: Top three markets Asia-Pacific investors invested in 

Source: Fidelity International. *It includes allocation to home market and mainland China.

Tech, AI seen as growth opportunity

While geopolitical tensions are contributing to near-term volatility, they are, the study shares, also reinforcing the importance of identifying long-term structural growth trends.

Looking ahead, technology and artificial intelligence ( AI ) stand out as the most favoured sector among Asia-Pacific investors in all markets, with 61% expecting it to deliver strong returns over the next 12 months. This places it ahead of energy ( 36% ) and healthcare ( 28% ), reinforcing AI’s position as a key structural growth theme.

While much has been written about AI-related investments entering ‘bubble’ territory, less than half ( 45% ) of Asia-Pacific investors, the study reveals, expect a significant correction in the AI sector in the next 12 months. On the contrary, a higher proportion of Asia-Pacific investors ( 51% ) expect to increase their investment in AI, with strongest interest seen in Taiwan ( 62% ) and mainland China ( 62% ).

Chart 2: Sectors Asia-Pacific investors expect to deliver strong returns over the next 12 months

Source: Fidelity International

Staying invested remains critical

Three key principles for investors navigating volatile markets are outlined in the study:

1. Stay invested

Periods of volatility may tempt investors to step back, but exiting the market can mean missing key recovery moments. Historic data confirms that markets recover from major downturns, including the dotcom crash, global financial crisis and Covid-19 crash. While recessions and market shocks will cause short-term drops, markets have consistently recovered and gone on to reach new highs. Staying invested, the study argues,helps ensure participation in long-term growth.

Chart 3: MSCI AC World Index from 1992 to 2025

Source: Refinitiv, Fidelity International, March 2026.

2. Diversify across regions and sectors

While home markets can feel more familiar, diversification remains essential to managing risk and smoothing returns over time. Crucially, effective diversification means allocating to assets and markets that behave differently under stress.

3. Take a long-term view rather than timing the market

Short-term market setbacks can present opportunities to invest at more attractive valuations. Investors who remain patient and focused on long-term trends can be better placed to benefit as markets recover. Analysis of major indexes shows that missing the best days in the market significantly impact long-term returns.

Chart 4: Impact of missing the best 5 and 30 days in the market

Source: Refinitiv, Fidelity International, March 2026.

“Market volatility is a natural part of investing, but it can challenge even the most experienced investors,” says Charlotte Chan, Fidelity’s head of Hong Kong and its global platform solutions. “It is encouraging to see that a significant number of investors in Asia-Pacific are maintaining a long-term perspective and staying invested, allowing for the potential for stock market drops to be later followed by new highs. 

“Geopolitical developments, including in the Middle East, are adding to short-term uncertainty - particularly through their impact on energy markets and inflation - but this makes it even more important for investors to remain focused on long-term outcomes. 

“Trying to time the market is extremely difficult. Investors who remain invested through periods of uncertainty are more likely to benefit from eventual recovery and long-term growth.

“AI is an exciting long-term opportunity for investors, and it’s clear many recognize its potential to drive future growth. At the same time, it’s important not to get carried away by short-term momentum. As with any fast-moving theme, there will be ups and downs along the way. Taking a diversified, long-term approach can help investors benefit from the opportunity while managing the risks.”