What's going on?

HSBC posted better-than-expected quarterly earnings on Tuesday, but Europe�s biggest bank by assets admitted it�ll need to start wangling its way into Asia�s good books sooner rather than later.

What does this mean?

HSBC has had two big challenges to contend with lately: the bank�s been making less from the money it�s lent to its customers due to ultra-low interest rates, while simultaneously having to set aside enough cash in case those customers couldn�t pay back their loans. And even though last quarter�s election and pandemic-driven chaos drove a surge in investor activity and, in turn, transaction fees, it wasn�t enough to stave off a steep fall in profit from the same time the year before.

So to turn things around, HSBC promised more cost-cutting measures � like additional layoffs � and a focus on faster-growing markets. But it might be a case of seeing is believing: investors sent the bank�s shares down regardless.

Why should I care?

Zooming in: Asia might be the place to be.�

HSBC makes most of its money in Asia, and that segment of its business looks like it�s about to get even bigger: the firm�s intending to scale down operations in the US and Europe, and invest $6 billion in fast-growing Asian economies. It�ll do that by looking after the wealth of the region�s well-heeled, in hopes it�ll become the go-to bank for the Singaporean, Chinese, and Hong Kong elite.

The bigger picture: An Asia-centric investment idea.

If you need proof of Asia�s economic acceleration, look no further than the fastest-growing of the bunch last year: Taiwan � which just raised its outlook for 2021 � is expecting its economy to grow at its fastest pace since 2014 this year (tweet this). That�s mostly down to the combination of a successful coronavirus containment strategy and strong global demand for all the tech products it produces � which add up to more than half its total exports.