Citi Private Bank said on Tuesday it has maintained an "overweight" stance on several Asian stock markets that have been badly hit in the ongoing trade fight between the U.S. and China.

Stocks in China, Hong Kong, Taiwan and South Korea have been among the biggest losers since tensions between the world's top two economies escalated last month — a point acknowledged by Ken Peng, head of Asia investment strategy at Citi Private Bank. But he said there are reasons to remain optimistic about those markets for now.

"We're still most positive on Asia," he told reporters at the bank's mid-year outlook in Singapore.

He added that friction between the U.S. and China in technology could end up benefiting companies in South Korea and Taiwan. Chinese tech firms are facing greater challenges doing business with U.S. companies, and that could potentially allow South Korean or Taiwanese players to fill the void and gain market share globally, he explained.

More generally, much of the global economic growth will center in Asia given the region's rising middle class that will drive consumption demand, said Peng. That's set to benefit sectors such as health care, autos and insurance, he said.