Emerging Asia Stocks Tops in Global Returns This Year
(Bloomberg) -- Emerging Asian economies are ahead of the curve when it comes to a post-virus recovery, and that is translating into some of the world's best equity returns this year by a wide margin.
A group of about 180 stocks from the emerging Asia Pacific region have posted total returns of 19% on average this year, well ahead of other geographies around the world, according to a Bloomberg analysis of 3,000 global shares. Eastern Europe is the only one of the six other regions that has posted a positive return this year, with a mere 2% gain, according to data compiled by Bloomberg.
The benchmark MSCI Emerging Markets Asia Index has recouped its losses for the year thanks to a run of gains in July, while the MSCI All-Country World Index remains down about 5% for the year, the data show.
Most of the top-returning stocks this year have ties to health care and medicine, with latex glove manufacturer Top Glove Corp., surgery devices maker Microport Scientific Corp. and vaccine developer Cansino Biologics Inc. leading the way with total returns of almost 300% each.
Ruchi Soya Industries Ltd., a maker of soy products in India, and chip foundry Semiconductor Manufacturing International Corp. are also in the Top 10 after returning at least 180% this year.
Asian Stocks, 2020's Leaders, Supported by Technicals, Forecasts
The emerging Asia grouping is also enjoying a rush of positivity from analysts, with estimated price targets up 4% in the past month, compared to a 2.7% average across the wider universe of stocks, according to data compiled by Bloomberg. The group's estimated earnings per share growth of 25% over the next 12 months compares favorably with an increase of just 6% projected for companies from North America.
Improving Picture
The improving earnings picture is part of a wider trend of decelerating downgrades identified by Goldman Sachs Group Inc. strategists including Timothy Moe. The MSCI Asia Pacific ex-Japan Index has seen consensus earnings downgrades slow to just 0.7% in the past month, from 8.1% in the past three months.
“North Asia markets are observing broader signs of recovery with more demand from re-opening economies like the U.S.,” the strategists wrote Friday. “Given the market's sector skew toward new economy and its first mover status on economic reopening, China may still see the most resilient earnings revisions as supported by the latest economic data.”
BlackRock Favors Asia Markets Closely Tied to China's Recovery
Chinese stocks surged in Shanghai and Hong Kong Monday amid positive commentary on the market from state media.
“China's domestic recovery seems on track,” the Goldman strategists wrote.
©2020 Bloomberg L.P.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
-
Talking Points This Week: AI Cash Burn, A Tiger Comeback And An India That Still Finds Its Own Path
India is not immune to higher oil or tighter global liquidity, yet its earnings base is broader, its domestic policy levers are still available.
-
Foreign Investors Own Half Of HDFC Bank and ICICI Bank. An LTCG Cut Could Matter Most Here
Foreign portfolio investors have US$115 billion parked in HDFC Bank, ICICI Bank. If the government cuts long-term capital gains tax, Jefferies says returning foreign money could land here first.
