Two Doors West: Why Asian Investors Are Looking to US and Canadian Stock Markets

According to a report from BNP Paribas cited in the South China Morning Post, Asian investors made net purchases of more than $128 billion in US stocks in 2025. Though the pace slowed in the back half of the year, the same BNP Paribas report shows that the fourth quarter alone accounted for $23 billion of that total. 

This suggests a broader pattern: Asian investors are venturing into the US stock market. And it appears that the US is not the only destination. A second market, one built around resources rather than technology, deserves the same look.

This $128 billion figure matters because of the investing habits that came before it.

A long-cited industry statistic states that on average, Singaporean investors keep about 39% of their portfolios in Singapore stocks even though they represent only 0.4% of global equity indices. According to economists, this is called home bias, and it is common not only in Singapore but across Asia as well. That is to say, historically, investors across Asia have leaned toward what is familiar to them—local banks, telecoms, and property names.

While this might be comfortable, investors are also starting to realize that by staying in a market that makes up less than half a percent of the world’s listed companies, they miss out on the great growth stories and diversification that a much bigger market can offer. The $128 billion flowing into US stocks in 2025 suggests that more investors are starting to act on this realization.

This shift is not happening in calm conditions. In June 2026, Vice Chairman of Moelis & Company, Eric Cantor, pointed to the rising interest from Asian investors in US assets. His comments came amid ongoing US-China trade tensions.

This detail matters because it shows that investors might be deciding that scale, liquidity, and sector depth are worth navigating through some friction. Whether this calculation holds up will depend on how trade relations develop, but the flows so far suggest that investors are not waiting to find out.

As Asian investors look beyond their home markets, understanding how different Western exchanges work becomes increasingly important. SmallCap Asia has published practical guides to accessing both US and Canadian stocks, providing useful context on the opportunities and considerations associated with each market.

When Asian investors think of the US stock market, they usually think of one of three places: The New York Stock Exchange, Nasdaq, or the over-the-counter market.

The distinction matters. Nasdaq provides deep exposure to technology and growth companies, while the NYSE is home to many established companies across financials, industrials, energy, healthcare, and other sectors. OTC securities offer another route into the US market, but they can come with lower liquidity, less information available, and greater risk than securities listed on major exchanges.

Entering the market is no longer difficult since most major brokers across Singapore, Hong Kong, and the wider region now offer some level of US market access. Instead, investors are more concerned with whether their broker supports their desired ticker, if the currency conversion is favorable, and how US dividend withholding tax affects their returns.

The second door gets less attention, but it opens into a very different part of the global equity market.

Canada is home to roughly 40% of the world’s public mining companies listed across the Toronto Stock Exchange and the TSX Venture Exchange. The market is especially relevant for investors interested in gold, copper, uranium, lithium, or other critical minerals. For Asian investors seeking resource exposure, this provides access to a large number of publicly traded mining companies.

There are also important differences between Canada’s major exchanges. The TSX generally hosts larger and more established companies, while the TSX-V focuses more on earlier-stage and growth companies, including junior miners and explorers. The CSE provides another market for entrepreneurial and emerging issuers.

Whichever door an investor walks through, the same checklist applies.

• Currency Exposure. US stocks trade in USD, Canadian stocks in CAD. In both cases, returns are affected by how that currency moves against the investor’s home currency.

• Withholding Tax. The US generally withholds 30% on dividends paid to non-residents, although applicable tax treaties may provide a reduced rate for investors in certain countries. Canada generally withholds 25%, which is reduced to 15% for eligible Singapore residents under the Canada-Singapore tax treaty.

• Time Zone. Both markets trade while most of Asia is asleep. This affects how quickly an investor can react to news or sudden price movements.

• Broker Access. Different brokers support different tickers, so investors will find it worthwhile to confirm the stock on their platform instead of assuming it is available.

None of the above are reasons to avoid either the US or the Canadian markets. They are simply the cost of admission.

Asian investors enter the Western stock market through two different doors, and there are different reasons to walk through them. The US offers scale and deep exposure to sectors such as technology, while Canada provides a particularly deep public market for mining. What is common is that Asian investors are becoming more comfortable venturing a little farther from their home market to find what it can offer.