Yesterday, BlackRock released its investment outlook for Asian equities
and credit, where it was reported Indonesia, China, India, Japan, Korea and
Taiwan are the significant markets to watch during the latter half of this
year.
This is as it was claimed structural reforms remain to dominate the
agenda and outlook for stock markets across the region.
China
The head of Asian equities at BlackRock claimed that the Chinese
leadership continues to motivate the domestic reforms process, as there has
been added value and risk as the year has progressed. This is particularly in
the energy and industrial sectors.
India
The election win of the BJP may access India’s potential by rebooting
its investment cycle. The decisive election result may improve government
decision making and execution, which in turn would boost investment in energy
and infrastructure, opening more employment opportunities.
Korea and Taiwan
According to a representative from BlackRock, Korea and Taiwan should be
beneficiaries of global and improved export growth.
Japan
Japan remains to add liquidity even as the economy absorbs the increase
in consumption taxes. Investors should expect more reform progress.
Indonesia
The market has delivered exceptional returns so far during 2014. However,
Indonesia is currently under elections, with market positioning, valuations, plus
the risk of negative surprise subsequent of the upcoming July elections adding some
caution. Although, any sell-off following the election would be a buying
opportunity.
