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A great rotation is brewing in Asia as investors shift from India to China, Korea
Agencies Agencies The nascent revival in North Asian equities is being touted as the start of a potential bull run as bets for China’s gradual reopening as well as the bottoming out of the chip industry intensify. Strategists at Goldman Sachs Group Inc. expect Asia’s equity leadership to shift from Southeast Asia and India to markets like China and Korea next year, while Societe Generale SA says Taiwan ’s tech-heavy market is also at an inflection point. Jefferies Financial Group Inc. has echoed similar views. Investors are also more wary about valuations in India, where benchmarks recently hit record highs, with Goldman Sachs expecting the market to relatively underperform in 2023.“Any positive catalysts such as a potential China re-opening and policy support, lowering of geopolitical tensions or tech cycle bottoming is likely to drive a sharp rerating” of North Asian markets, Jefferies strategists led by Desh Peramunetilleke wrote in a note. For China watchers, a Politburo meeting in early December, followed soon after by the annual Central Economic Work Conference, may offer useful signals. And then we get more to the middle of the train, which is China.” Source - Economic Times
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