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J.P. Morgan and Morgan Stanley have a bullish outlook on Asia

  • Regular
  • Economy
  • 9 months ago
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Asian markets may have had a year to forget, however, both J.P. Morgan and Morgan Stanley have positive outlooks for the coming year.

Regardless of the fact most of the indexes within the region have slumped, the Shenzhen composite falling by 30% while the Shanghai has shed over 20% and the Hang Seng has too had a turbulent year with a loss of 15%.

Following suit, Japan's Nikkei 225 has given up 10% so far and over in South Korea the Kospi is 17% lighter.

One would assume it is only going to get better from here, Morgan Stanley’s chief equity strategist for the Asia region, Jonathan Garner seems to think that way, especially when looking at mainland China.

"The Chinese monetary cycle is diverging from the U.S. monetary cycle," adding that Beijing’s easing of monetary policy is a positive move and one that has prompted the investment banker to be "outright bullish."

The same tone came from J.P. Morgan’s Asia Pacific investment specialist, Janet Tsang as she pointed, “The market has been very difficult this year, but actually we remain long-term positive on Asia. And we think this is now a time to build core strategic positions."

Tsang feels that the greenback will weaken throughout 2019 while trade relations between Washington and Beijing will eventually improve and that Asian companies, although shares have been declining, have reported solid earnings.

“Overall, with risks going to subside and fundamentals remain solid, we believe that Asian equities should look better in 2019."

Morgan Stanley’s Garner sees emerging markets faring well in the coming year, especially heavyweights like China, India and Indonesia to gather strength.

 

 

Source: Smart Trend Team