Energy Sector Overall Strength
In H1 2025, the Asia Pacific energy sector performed strongly overall, with the MSCI Asia Pacific Energy Index gaining over 15%, outperforming the broader market index. Both traditional oil & gas and new energy sub-sectors achieved positive returns.
Oil & Gas Stocks Benefit from Rising Prices
International crude prices remained at elevated levels in H1, with major Asia Pacific oil & gas companies seeing significant earnings growth. PetroChina, CNOOC, Reliance Industries and other leading companies saw stock price gains exceeding 20%.
New Energy Stocks Continue Strength
The new energy sector was driven by both policy support and earnings growth, with leading companies in solar, wind, energy storage, and hydrogen sub-sectors showing strong stock performance. CATL, LONGi Green Energy, Sungrow Power and others saw market capitalization continue to climb.
Energy ETF Fund Inflows
Energy-themed ETFs received substantial fund inflows in H1, with Asia Pacific energy ETF assets growing over 30%. Both institutional and retail investors increased their allocation to the energy sector.
H2 Outlook
Analysts expect energy stocks to continue diverging in H2. Oil & gas stock performance will depend on oil price trends, while new energy stocks will be affected by policy implementation and earnings delivery. Focus on leading companies with core competitiveness is recommended.
