Credit Suisse: Asia Pacific rebounded in the first half of the year

For the Asia-Pacific stock market, Credit Suisse is expected to rebound in the first half of the year, as leading indicators show that there are many positive factors to support, including the weakening of the US dollar, China will introduce more stable measures, etc., and the second half will face greater risks, mainly depends on Negotiations have progressed in the trade war, but the impact of the trade war is now seen to be worse than market expectations.

The bank is optimistic about the South Korean, Singaporean and Taiwanese markets in the region, giving the Chinese and Hong Kong markets a “synchronization with the big market”. As the valuation of Chinese stocks is cheap, the fundamentals are not attractive. The HSI and SSE in the basic situation. The KLCI targets were 27,000 points and 2800 points respectively.

Citigroup expects that the mainland will show more signs of economic weakness this year. Due to slower export growth, increased manufacturing inventories and weak real estate, A-share valuation will remain at a low level, mainly because the economic reform process in the Mainland is not satisfactory, worrying about China. The ability of the economy to continue to develop. Compared with Hong Kong stocks, A-share earnings growth is relatively slow. Due to the large number of A-share financial stocks, China’s MSCI index is expected to be 78 points at the end of this year, with a potential increase of about 10%. It is recommended to choose defensive sectors such as public, telecommunications and infrastructure. Wait.

UBS expects MSCI China’s full-year earnings to grow by 7.6%, lower than the market average. A-shares are in a V-shaped trend throughout the year and are expected to improve in the middle and third quarters. The bank is optimistic about the Internet and defensive shares.