Morgan finds Asian emerging mkts attractive now
They have become attractive as govts support economic growth and oil prices fell.BSE: Gainers, Losers | NSE: Gainers, Losers | Stocks 52 Week: High, Low
By Bloomberg |
SINGAPORE: Asian emerging market equities have become more attractive as governments intervened to support economic growth and oil prices slumped, Morgan Stanley said. The broking firm is recommending investors buy more Asian technology and financial stocks at the expense of energy and commodity producers in Latin America and emerging Europe.
Morgan Stanley favours stocks in South Korea, Taiwan and China, whose government announced this week a 4 trillion yuan ($586 bn) package to bolster expansion.
���Asia is already showing it���s more able to engage in self help,��� said Jonathan Garner, the brokerage���s London-based head of emerging market strategy, in a television interview in Singapore. ���You are not getting the same aggressive counter-cyclical policies��� in the Middle East, Africa and Latin America.
The MSCI Asian Emerging Market Index has lost 56% this year on concern the global economic slowdown will hurt profits among the region���s companies. That about matches the main MSCI Emerging Market Index���s 55% slump and surpasses a 45% tumble in the MSCI Asia Pacific Index.
Asian stocks rallied on November 10 after China, whose economy is the biggest contributor to global growth, said it will increase infrastructure spending, tax deductions and farming subsidies. The package is equivalent to almost a fifth of the nation���s gross domestic product.
���Solid��� Ground for Recovery: China���s CSI 300 Index has dropped 66% this year, the biggest decline in Asia and the eighth-worst performer among the 89 global stock benchmarks tracked by Bloomberg.
���The ground for recovery in China is definitely much, much more solid than in any other part of the world,��� Morgan Stanley���s China strategist Jerry Lou told reporters in Singapore. ���Right now the stock market has landed already. We will be looking for early recovery signs to turn more bullish.���
Taiwan���s central bank this week also lowered its benchmark interest rate for the fourth time in two months, while South
Korea last week slashed borrowing costs for the third time in four weeks. Brazil, Russia, India and China, the BRIC nations, plan co-ordinated measures to increase trade and capital flows between their economies, Russian Finance Minister Alexei Kudrin said at the weekend.
The region���s central bankers may have room to further reduce rates with the decline in crude oil prices, Morgan Stanley���s Asian strategist Malcolm Wood said.
Morgan Stanley favours stocks in South Korea, Taiwan and China, whose government announced this week a 4 trillion yuan ($586 bn) package to bolster expansion.
���Asia is already showing it���s more able to engage in self help,��� said Jonathan Garner, the brokerage���s London-based head of emerging market strategy, in a television interview in Singapore. ���You are not getting the same aggressive counter-cyclical policies��� in the Middle East, Africa and Latin America.
The MSCI Asian Emerging Market Index has lost 56% this year on concern the global economic slowdown will hurt profits among the region���s companies. That about matches the main MSCI Emerging Market Index���s 55% slump and surpasses a 45% tumble in the MSCI Asia Pacific Index.
Asian stocks rallied on November 10 after China, whose economy is the biggest contributor to global growth, said it will increase infrastructure spending, tax deductions and farming subsidies. The package is equivalent to almost a fifth of the nation���s gross domestic product.
���Solid��� Ground for Recovery: China���s CSI 300 Index has dropped 66% this year, the biggest decline in Asia and the eighth-worst performer among the 89 global stock benchmarks tracked by Bloomberg.
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���The ground for recovery in China is definitely much, much more solid than in any other part of the world,��� Morgan Stanley���s China strategist Jerry Lou told reporters in Singapore. ���Right now the stock market has landed already. We will be looking for early recovery signs to turn more bullish.���
Taiwan���s central bank this week also lowered its benchmark interest rate for the fourth time in two months, while South
Korea last week slashed borrowing costs for the third time in four weeks. Brazil, Russia, India and China, the BRIC nations, plan co-ordinated measures to increase trade and capital flows between their economies, Russian Finance Minister Alexei Kudrin said at the weekend.
The region���s central bankers may have room to further reduce rates with the decline in crude oil prices, Morgan Stanley���s Asian strategist Malcolm Wood said.
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