Asia’s top-performing fund managers are seeking opportunities in battered Chinese stocks and turning selective on the hot artificial intelligence theme as the region comes off a tough year.

The MSCI Asia Pacific Index hugely underperformed global peers in 2023, with its 9% rise less than half the S&P 500’s advance. The global backdrop now looks more favorable. The Federal Reserve’s much-anticipated interest rate cuts are poised to add tailwinds while expectations are growing for Chinese equities to bottom out.