In this article, we will take a look at the 12 Best Asian Stocks to Buy According to Hedge Funds.
As we proceed further into the second half of 2025, trade disputes, exchange rate swings, and evolving development models continue to influence the Asian Region. Concerns about trade tensions continue to be firmly active, and tariffs are still threatening Asia’s growth. Even though the prohibitive tariff levels have somewhat decreased, uncertainty still persists, especially in the trade relationship between the US and China.
On the flip side, the declining US dollar eases financial conditions and opens the door for more aggressive monetary easing across Asia. Market analysts believe that this could potentially offset the impact on growth, especially for economies like India that experience higher domestic demand.
That said, Asia-Pacific markets closed mixed on August 28, given the lack of any substantial catalysts, with investors weighing the Bank of Korea’s policy announcement. For the second consecutive meeting, South Korea’s central bank maintained its policy rate at 2.5% in spite of the country’s uncertain trade situation.
According to a note from analysts at Bank of America, the Bank of Korea would be open to lowering its policy rates over the course of the following three months, with a potential rate cut in October. Additionally, they anticipate a second cut in the first half of 2026 to maintain rates at 2%.
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Our Methodology
To compile our list of the best Asian stocks to buy, we used the Finviz stock screener to look for U.S.-listed Asian companies with strong fundamentals. We then ranked them according to the number of hedge funds that held stakes in them as of the second quarter of 2025.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
12. Mizuho Financial Group, Inc. (NYSE:MFG)
Number of Hedge Fund Holders: 14
Mizuho Financial Group, Inc. (NYSE:MFG) ranks among the best Asian stocks to buy. Moody’s Ratings confirmed Mizuho Financial Group, Inc. (NYSE:MFG)’s A1 long-term foreign currency senior unsecured debt ratings on August 26 with a stable outlook. Additionally, the firm confirmed that Mizuho’s primary subsidiary banks received baa1 Baseline Credit Assessments (BCAs) and A1 long-term domestic and foreign currency deposit ratings.
The affirmation is in line with Moody’s prediction that the company’s profitability will progressively increase while staying beneath that of its international and Japanese counterparts with stronger standalone credit profiles.
Moody’s predicts that rising domestic interest rates will increase Mizuho’s profitability by boosting net interest margins and reinvesting liquid assets in higher-yielding Japanese government bonds. The firm also expects margin expansion to balance rising loan loss provisions.
The parent company of Mizuho Bank, Mizuho Financial Group, Inc. (NYSE:MFG) is a bank holding company that offers retail banking, corporate banking, investment banking, and asset management services.
11. Toyota Motor Corporation (NYSE:TM)
Number of Hedge Fund Holders: 18
Toyota Motor Corporation (NYSE:TM) ranks among the best Asian stocks to buy. On August 18, Bernstein SocGen Group raised its price target for Toyota Motor Corporation (NYSE:TM) from JPY2,550 to JPY3,500, upgrading it from Market Perform to Outperform. The boost comes after Toyota Motor Corporation (NYSE:TM) announced a 20% return on equity (ROE) target, which Bernstein considers a major shift for the historically conservative automaker that doesn’t commonly disclose precise financial targets.
Given the continuous acceleration of hybrid electric vehicle (HEV) sales as a short-to-mid-term profit driver, Bernstein believes Toyota Motor Corporation (NYSE:TM) could meet this ROE objective before the company’s own timeframe.
The firm also cited Toyota’s projected JPY165 billion value chain profit gain in the current fiscal year as a reason for the company’s better financial results.
Toyota Motor Corporation (NYSE:TM), the world’s largest carmaker in terms of sales volume, designs, produces, assembles, and distributes passenger cars, minivans, commercial vehicles, and associated parts and accessories worldwide.
10. Li Auto Inc. (NASDAQ:LI)
Number of Hedge Fund Holders: 23
Li Auto Inc. (NASDAQ:LI) ranks among the best Asian stocks to buy. Tiger Securities reaffirmed its Buy rating on Li Auto Inc. (NASDAQ:LI) but reduced its price target from $33 to $28 on August 28. Tiger Securities characterized Li Auto’s second quarter 2025 results as “largely in line with expectations”, which came after the company originally lowered its delivery guidance earlier in the quarter.
Li Auto Inc. (NASDAQ:LI) delivered 111,074 vehicles in the second quarter, which marked a 20% sequential recovery from the first quarter of 2025 and a moderate 2% year-over-year growth. Total revenues for the quarter came in at RMB 30.2 billion, a 4.5% decrease year-over-year but a 16.7% increase over the previous quarter.
Chinese EV maker Li Auto Inc. (NASDAQ:LI) specializes in smart SUVs and extended-range electric cars (EREVs). The company is a trailblazer in the effective marketing of extended-range electric vehicles.
9. KE Holdings Inc. (NYSE:BEKE)
Number of Hedge Fund Holders: 33
KE Holdings Inc. (NYSE:BEKE) ranks among the best Asian stocks to buy. Jefferies maintained its Buy rating on KE Holdings Inc. (NYSE:BEKE) on August 26 while reducing its price target from $24.50 to $22. The cut comes after KE Holdings’ second-quarter reports, which showed non-GAAP earnings above estimates and revenue in line with expectations.
According to Jefferies, since June, the management of KE Holdings Inc. (NYSE:BEKE) has emphasized softer industry trends in the marketplaces for both new and existing home sales. KE Holdings has responded to these market conditions by putting policies in place to boost agent performance, store productivity, and efficiency.
Along with using artificial intelligence to improve operations and customer experience, the company is also bolstering the unit economics of home furnishings and renovations.
Chinese real estate holding company KE Holdings Inc. (NYSE:BEKE) offers a comprehensive online and offline platform for housing services and transactions.
8. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 33
Baidu, Inc. (NASDAQ:BIDU) ranks among the best Asian stocks to buy. Despite continued revenue issues brought on by Baidu, Inc. (NASDAQ:BIDU)’s AI search revolution, Tiger Securities analyst Bo Pei reiterated a Buy rating and $100 price target on the company on August 20.
The company’s AI Cloud revenue increased 27% year-over-year to RMB 6.5 billion, driven by subscription-based services and GPU usage of more than 90% for major clusters. That said, management anticipates weaker growth in the latter half of 2025 due to swings in project-based revenue.
Conversely, Baidu’s autonomous driving service Apollo Go provided 2.2 million fully driverless rides in Q2, a 148% increase year-over-year. The company raked in favorable unit economics in China and is expanding globally via collaborations with Uber in Asia/Middle East and Lyft in Europe.
Baidu, Inc. (NASDAQ:BIDU), a leading Chinese technology company, manages China’s largest internet search engine. Beyond its search business, the company has expanded into AI-driven initiatives that include self-driving technology and conversational AI models like Ernie.
7. Trip.com Group Limited (NASDAQ:TCOM)
Number of Hedge Fund Holders: 40
Trip.com Group Limited (NASDAQ:TCOM) ranks among the best Asian stocks to buy. On August 29, JPMorgan boosted its price target for Trip.com Group Limited (NASDAQ:TCOM) to $90 from $75, maintaining an Overweight rating on the stock. The upgrade comes after Trip.com Group reported strong second-quarter 2025 results and a positive financial outlook for the third quarter of 2025.
According to the firm, Trip.com Group Limited (NASDAQ:TCOM) has lagged behind the sector average by 10 percentage points over the last three months due to investor concerns over JD’s prospective entry into the China domestic OTA market.
However, JPMorgan believes Trip.com Group Limited (NASDAQ:TCOM) has a solid position as a market leader in online travel agencies, with a strong presence among mid- to high-end consumers, enabling it to capitalize on numerous key opportunities, including ripple effects from an A-share rise.
Global travel service company Trip.com Group Limited (NASDAQ:TCOM) provides end-to-end solutions for the corporate travel, lodging, tour, and transportation sectors.
6. JD.com, Inc. (NASDAQ:JD)
Number of Hedge Fund Holders: 54
JD.com, Inc. (NASDAQ:JD) ranks among the best Asian stocks to buy. Citing increased food delivery spending projections, CFRA reduced its price target on JD.com, Inc. (NASDAQ:JD) from $37 to $36 on August 15 while retaining a Buy rating on the company’s shares.
The firm reduced its 2025/2026 earnings per ADS expectations to CNY11.11/CNY18.44 from CNY11.69/CNY19.41, citing higher investment in JD.com’s growing food delivery operation, which encountered 25 million daily orders by late June.
According to CFRA, JD.com’s revenue will likely rise by 20% in 2025 and 15% in 2026. This growth is expected to be fueled by the company’s rapid foray into the food delivery market, as well as e-commerce expansion bolstered by more affordable products, China’s expanded home appliance trade-in program, and government subsidies for electronics transactions.
JD.com, Inc. (NASDAQ:JD) is a leading Chinese e-commerce company that focuses on computers and other electronic products, all the while serving as a supply chain-focused technology provider. Using its logistics network, JD.com has established itself as a major player in China’s online retail market.
5. Grab Holdings Limited (NASDAQ:GRAB)
Number of Hedge Fund Holders: 60
Grab Holdings Limited (NASDAQ:GRAB) ranks among the best Asian stocks to buy. On August 21, Grab Holdings Limited (NASDAQ:GRAB) reported its Q2 2025 earnings results, with an EPS of $0.01, in line with market expectations, and revenue of $819 million, slightly crossing the expected $812.79 million.
Group Monthly Transacting Users (MTU) hit a record high in Q2 2025, indicating the company’s solid growth. Meanwhile, the company’s on-demand GMV increased 21% year-over-year, indicating solid demand for its services. This expansion remains consistent with Grab’s previous trend of broadening its range of services and market presence throughout Southeast Asia.
By the end of the year, the company expects its loan book to have grown to over $1 billion, and it strives for delivery segment margins of over 4% in a steady state.
A multinational technology company based in Singapore, Grab Holdings Limited (NASDAQ:GRAB) runs a superapp in Southeast Asia that offers services related to digital financial services, mobility, and delivery.
4. PDD Holdings Inc. (NASDAQ:PDD)
Number of Hedge Fund Holders: 65
PDD Holdings Inc. (NASDAQ:PDD) ranks among the best Asian stocks to buy. Following the company’s better-than-expected second-quarter results, BofA Securities boosted its price target for PDD Holdings Inc. (NASDAQ:PDD) to $141 from $120 on August 26, retaining a Neutral rating.
While PDD Holdings’ adjusted net profit surpassed projections by 46%, its revenue was in line with consensus estimates. Despite lower ad monetization at 4.32% compared to 4.42% last year, marketing revenue increased 13% year-over-year, led by a projected 16% gain in gross merchandise value (GMV).
The company’s transaction service revenue climbed by 1% year-on-year, with strong growth from TEMU and Duoduo Grocery balancing considerable drops in China marketplace commissions as the company continued to offer charge reductions through its merchant support program.
PDD Holdings Inc. (NASDAQ:PDD) is a global commerce company that operates several businesses, including two key ventures: Pinduoduo and Temu. Pinduoduo is an e-commerce platform with a wide range of products, whereas Temu is an online marketplace that specializes in heavily discounted consumer goods.
3. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 101
Alibaba Group Holding Limited (NYSE:BABA) ranks among the best Asian stocks to buy. On August 29, Alibaba Group Holding Limited (NYSE:BABA) reported second-quarter earnings of 14.75 yuan per share, falling short of analyst expectations of 15.47 yuan. The company’s revenue came in at 247.7 billion yuan, which was lower than the consensus expectation of 253.8 billion. On the other side, the IT giant recorded a 78% increase in net income, aided by gains from investments in equity and the sale of its Turkish subsidiary Trendyol, although this was somewhat offset by lower operating income.
Cloud computing continued to be a major growth engine, as revenue increased 26% to 33.4 billion yuan, stronger than the previous quarter’s 18% rise. Additionally, the division, which is at the heart of Alibaba’s AI objectives, reported a 26% increase in adjusted EBITA.
Alibaba Group Holding Limited (NYSE:BABA) is an e-commerce and technology company that caters to small business owners and consumers. The company is also a pioneer in cloud computing, logistics, and digital media.
2. Sea Limited (NYSE:SE)
Number of Hedge Fund Holders: 102
Sea Limited (NYSE:SE) ranks among the best Asian stocks to buy. On August 18, Morgan Stanley maintained its Overweight rating on Sea Limited (NYSE:SE) and boosted its price target from $206 to $215. The firm highlighted Sea’s e-commerce division’s balanced strategy for growth, investments, and profitability, pointing out that these tactics are bolstering the company’s competitiveness and market position.
According to Morgan Stanley, Sea’s gaming section, Garena, has shown unexpected growth momentum, and analysts predict further possible increase in the third quarter. In addition, the firm claims that the financial technology segment is emerging as a key driver of the stock’s bull run.
Sea Limited (NYSE:SE) is a Singapore-based consumer technology company that operates in the digital entertainment, e-commerce, and financial services industries.
1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 187
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks among the best Asian stocks to buy. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced a robust second quarter for 2025 on August 21. The company’s EPS rose by 60.7% year-over-year to NT$15.36. Meanwhile, revenue jumped by 11.3% sequentially to NT$30.1 billion, fueled by strong demand in the smartphone and high-performance computing (HPC) sectors.
The company’s focus on cutting-edge nodes, including the 3nm and 5nm nodes, has boosted its market position and greatly increased wafer revenue. The HPC platform especially experienced a 14% increase quarter-over-quarter, indicating rising demand for TSMC’s revolutionary semiconductor products.
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a leading Taiwanese company that offers semiconductor manufacturing services.
While we acknowledge the potential of TSM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TSM and that has 100x upside potential, check out our report about this cheapest AI stock.
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