{"id":333,"date":"2023-02-01T15:02:13","date_gmt":"2023-02-01T20:02:13","guid":{"rendered":"https:\/\/embarrdowns.com\/asian-stocks-on-bullish-run-what-to-expect-ahead\/"},"modified":"2023-04-12T11:14:43","modified_gmt":"2023-04-12T16:14:43","slug":"asian-stocks-on-bullish-run-what-to-expect-ahead","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/asian-stocks-on-bullish-run-what-to-expect-ahead\/","title":{"rendered":"Asian Stocks on Bullish Run \u2013 What to Expect Ahead"},"content":{"rendered":"

Asian stocks have been on a bullish run since the end of October 2020, with the MSCI Asia Pacific Index up 23%, outperforming the US benchmark by the most since 1993 and also beating its European peer. The primary driver behind this rally has been China\u2019s reopening and a weakening US dollar, as investors look for recession-proof markets.[0]<\/a><\/sup><\/p>\n

The rally has seen the MSCI Asia gauge up 7.2% in January, with many more months of gains ahead, according to a survey of fund managers by Bank of America Corp.[0]<\/a><\/sup> China\u2019s growth outlook is rapidly improving, providing a much-needed boost to the economies of the region.[0]<\/a><\/sup> This is in stark contrast to Europe and the US, where earnings estimates are being downgraded.<\/p>\n

Hong Kong stocks lagged their Chinese peers on the first trading day<\/a> after the Lunar New Year break, with the benchmark Hang Seng Index shedding 0.5%.[1]<\/a><\/sup> Galaxy Securities analysts reckoned H-shares could enjoy a good run in the coming months, as international investors\u2019 sentiment over China and Hong Kong equities has been tracking up.[2]<\/a><\/sup> They also noted that corporate earnings in 1Q could get a boost from continued economic activity resumption as Covid curbs are relaxed.[2]<\/a><\/sup><\/p>\n

Investors expect the Federal Reserve to raise interest rates by 25 basis points on Wednesday and for the Bank of England and European Central Bank to follow with half-point hikes the day after.[3]<\/a><\/sup> Any deviation from this script would be a real shock and could throw the markets into disarray.<\/p>\n

0. <\/span>“Bullish Calls Mount as Asian Stocks Go On a Tear in the New Year” Yahoo! Voices, 21 Jan. 2023, https:\/\/www.yahoo.com\/now\/bullish-calls-mount-asian-stocks-010000853.html<\/a><\/a><\/p>\n

1. <\/span>“Chinese stocks surge after week-long holiday By Investing.com” Investing.com, 30 Jan. 2023, https:\/\/www.investing.com\/news\/stock-market-news\/chinese-stocks-surge-after-weeklong-holiday-2990684<\/a><\/a><\/p>\n

2. <\/span>“Indian Morning Briefing: Asian Markets Mixed at Start of the Week” Morningstar, 30 Jan. 2023, https:\/\/www.morningstar.com\/news\/dow-jones\/202301291095\/indian-morning-briefing-asian-markets-mixed-at-start-of-the-week<\/a><\/a><\/p>\n

3. <\/span>“Asia shares brace for rate hikes, earnings rush” CNA, 30 Jan. 2023, https:\/\/www.channelnewsasia.com\/business\/asia-shares-brace-rate-hikes-earnings-rush-3240431<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Asian stocks have been on a bullish run since the end of October 2020, with the MSCI Asia Pacific Index up 23%, outperforming the US benchmark by the most since 1993 and also beating its European peer. The primary driver behind this rally has been China\u2019s reopening and a weakening US dollar, as investors look for recession-proof markets.[0]<\/a><\/sup><\/p>\n

The rally has seen the MSCI Asia gauge up 7.2% in January, with many more months of gains ahead, according to a survey of fund managers by Bank of America Corp.[0]<\/a><\/sup> China\u2019s growth outlook is rapidly improving, providing a much-needed boost to the economies of the region.[0]<\/a><\/sup> This is in stark contrast to Europe and the US, where earnings estimates are being downgraded.<\/p>\n

Hong Kong stocks lagged their Chinese peers on the first trading day<\/a> after the Lunar New Year break, with the benchmark Hang Seng Index shedding 0.5%.[1]<\/a><\/sup> Galaxy Securities analysts reckoned H-shares could enjoy a good run in the coming months, as international investors\u2019 sentiment over China and Hong Kong equities has been tracking up.[2]<\/a><\/sup> They also noted that corporate earnings in 1Q could get a boost from continued economic activity resumption as Covid curbs are relaxed.[2]<\/a><\/sup><\/p>\n

Investors expect the Federal Reserve to raise interest rates by 25 basis points on Wednesday and for the Bank of England and European Central Bank to follow with half-point hikes the day after.[3]<\/a><\/sup> Any deviation from this script would be a real shock and could throw the markets into disarray.<\/p>\n

0. <\/span>“Bullish Calls Mount as Asian Stocks Go On a Tear in the New Year” Yahoo! Voices, 21 Jan. 2023, https:\/\/www.yahoo.com\/now\/bullish-calls-mount-asian-stocks-010000853.html<\/a><\/a><\/p>\n

1. <\/span>“Chinese stocks surge after week-long holiday By Investing.com” Investing.com, 30 Jan. 2023, https:\/\/www.investing.com\/news\/stock-market-news\/chinese-stocks-surge-after-weeklong-holiday-2990684<\/a><\/a><\/p>\n

2. <\/span>“Indian Morning Briefing: Asian Markets Mixed at Start of the Week” Morningstar, 30 Jan. 2023, https:\/\/www.morningstar.com\/news\/dow-jones\/202301291095\/indian-morning-briefing-asian-markets-mixed-at-start-of-the-week<\/a><\/a><\/p>\n

3. <\/span>“Asia shares brace for rate hikes, earnings rush” CNA, 30 Jan. 2023, https:\/\/www.channelnewsasia.com\/business\/asia-shares-brace-rate-hikes-earnings-rush-3240431<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":332,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/333"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=333"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/333\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/332"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=333"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=333"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=333"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}