Index Investing News
Saturday, May 24, 2025
No Result
View All Result
  • Login
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion
No Result
View All Result
Index Investing News
No Result
View All Result

Stock traders hunt for winners in Asia as Fed’s policy turns

by Index Investing News
May 7, 2023
in Financial
Reading Time: 3 mins read
A A
0
Home Financial
Share on FacebookShare on Twitter


The growing likelihood of a US recession and a pause in the Federal Reserve’s rate hikes is reshaping the global landscape, and prompting Asia’s stock pickers to recalibrate their bets.

Value is seen in consumer discretionary and tech services shares, with investors likely to gravitate toward markets that rely on local or regional demand. On the other hand, financial stocks, along with equities in South Korea and Taiwan, are seen by strategists as the most susceptible to a US downturn.

Money managers are on the hunt for the next big trade after spending most of the year scooping up technology, chip and selected Chinese shares. The outlook for the dollar and China’s economy are among the biggest wild cards as Asian equities look to recover from their biggest annual drop in over a decade.

“The overall economic trends of US deceleration, China acceleration and the Asian domestic demand story” are in place, said Tai Hui, chief Asia market strategist at JPMorgan Asset Management. “If there’s any risk aversion, it’s not translating into a stronger dollar and that helps Asian and emerging market assets.”

ETMarkets.com

South Korean and Taiwanese equities are at risk of falling behind after outperforming most of their Asian peers so far this year. That’s because the US — the biggest market for their heavyweights Taiwan Semiconductor Manufacturing Co. and Samsung Electronics Co. — is facing slowing growth, a banking turmoil and a debt-ceiling standoff. That’s even as tech shares stand to benefit from lower interest rates.Taiwan and the information technology sector are more sensitive to US financial conditions and economic growth than most other parts of Asia Pacific excluding Japan, according to Goldman Sachs Group Inc.

chart2bloomETMarkets.com

Source: Goldman Sachs report

Exporters linked to the auto, smartphone and television supply chain are looking vulnerable, said Herald van der Linde, head of Asia-Pacific equity strategy at HSBC Holdings Plc. “We think there’s a rotation out of Korea and Taiwan going into India,” he said.

Global funds have bought a net about $2.5 billion of Indian shares this quarter while offloading roughly the same amount of Taiwan stocks, according to data compiled by Bloomberg. India’s stock benchmark is up more than 4% during the period, beating all major Asian peers, and its economy is forecast to grow almost 7% in the fiscal year 2023.

Sell Financials, Buy Consumption
At the other end of the spectrum, lenders such as National Australia Bank Ltd. and DBS Group Holdings Ltd. are facing growing margin pressures as the Fed nears the end of its tightening cycle. This may end two years of outperformance for the financial sector versus consumer stocks and most other industries in the region.

Among sectoral picks, funds are leaning toward consumer shares amid expectations of resilient local demand and a recovery in China. Invesco’s David Chao said staples are a good bet to ride out the volatility until the Fed calls time on its rate hikes.

Chart3bloomETMarkets.com

After that, Asia “should lead the world in terms of cyclical recovery,” the global market strategist said, and discretionary stocks particularly tourism ones in Southeast Asia and Japan are among his top picks. For JPMorgan’s Hui, Asia’s tech services stocks such as internet and e-commerce names are in a better position than hardware plays given their reliance on domestic or regional demand.

Within Southeast Asia, “we are overweight on Indonesia. We see earnings growth of 17% which is pretty robust at this point. We like banks and technology,” said Evelyn Yeo, head of Asia investments at Pictet Wealth Management. “China and India are the two growth engines for Asia, and it seems to be on a good track in terms of growth momentum.”



Source link

Tags: AsiaFedsHuntPolicyStockTradersturnswinners
ShareTweetShareShare
Previous Post

Darren Waller Pursues Music Career in Addition to NFL Success

Next Post

Slinger lake home with hot tub is on the market for $4.2M: Open House

Related Posts

Aegis Vopak Terminals IPO: Firm raises Rs 1,260 crore from Nomura, Aberdeen 30 different anchor buyers

Aegis Vopak Terminals IPO: Firm raises Rs 1,260 crore from Nomura, Aberdeen 30 different anchor buyers

by Index Investing News
May 24, 2025
0

Storage options supplier Aegis Vopak Terminals has raised Rs 1,260 crore crore from 32 anchor buyers, allocating over 5.36 crore...

Salesforce exec says rise of AI brokers means ‘each job must be rethought’

Salesforce exec says rise of AI brokers means ‘each job must be rethought’

by Index Investing News
May 24, 2025
0

© 2025 Fortune Media IP Restricted. All Rights Reserved. Use of this website constitutes acceptance of our Phrases of Use...

Bicara: Inventory Decline On FICERA Summary Launch Creates Shopping for Alternative (NASDAQ:BCAX)

Bicara: Inventory Decline On FICERA Summary Launch Creates Shopping for Alternative (NASDAQ:BCAX)

by Index Investing News
May 24, 2025
0

This text was written byComply withTerry Chrisomalis is a personal investor within the Biotech sector with years of expertise using...

Leela Lodges Operator Schloss Bangalore Raises Rs 1,575 Crore From Anchor Traders Forward Of IPO

Leela Lodges Operator Schloss Bangalore Raises Rs 1,575 Crore From Anchor Traders Forward Of IPO

by Index Investing News
May 23, 2025
0

Schloss Bangalore, the operator of the Indian luxurious resort 'The Leela', has finalised allocation of 36,206,896 fairness shares to anchor...

India to push Monetary Motion Job Power to place Pakistan on gray record once more: Sources

India to push Monetary Motion Job Power to place Pakistan on gray record once more: Sources

by Index Investing News
May 23, 2025
0

The Narendra Modi authorities plans to recommend putting Pakistan again to the “gray record” at a key assembly of the...

Next Post
Slinger lake home with hot tub is on the market for .2M: Open House

Slinger lake home with hot tub is on the market for $4.2M: Open House

Bank buyers expect sweeteners as US government sets new bar By Reuters

Bank buyers expect sweeteners as US government sets new bar By Reuters

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

RECOMMENDED

Reason Why SOL’s Upside Is Capped At

Reason Why SOL’s Upside Is Capped At $20

January 10, 2023
Ruben Amorim confirms new Lisandro Martinez damage is ‘severe scenario’

Ruben Amorim confirms new Lisandro Martinez damage is ‘severe scenario’

February 2, 2025
New Quality Control Standards For AVMs May Cover Discrimination

New Quality Control Standards For AVMs May Cover Discrimination

June 3, 2023
The 634-page report on Hunter Biden’s laptop

The 634-page report on Hunter Biden’s laptop

October 27, 2022
Watch: Bengals DE catches TD cross vs. Titans

Watch: Bengals DE catches TD cross vs. Titans

December 15, 2024
Ex-Ford CEO: EV startups face ‘real financial trouble’

Ex-Ford CEO: EV startups face ‘real financial trouble’

March 18, 2024
NFL announces date for 49ers-Eagles rematch

NFL announces date for 49ers-Eagles rematch

May 11, 2023
How Lengthy He Would possibly Serve in Jail – Hollywood Life

How Lengthy He Would possibly Serve in Jail – Hollywood Life

November 19, 2024
Index Investing News

Get the latest news and follow the coverage of Investing, World News, Stocks, Market Analysis, Business & Financial News, and more from the top trusted sources.

  • 1717575246.7
  • Browse the latest news about investing and more
  • Contact us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Privacy Policy
  • Terms and Conditions
  • xtw18387b488

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • World
  • Investing
  • Financial
  • Economy
  • Markets
  • Stocks
  • Crypto
  • Property
  • Sport
  • Entertainment
  • Opinion

Copyright © 2022 - Index Investing News.
Index Investing News is not responsible for the content of external sites.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In