Financial News
Written by: Zhang Weilun
2020-12-03 21:17
Last update date: 2020-12-03 21:17
Credit Suisse Bank Analyst pointed out that the Asian (except Japan) stock market will enter a new earnings super cycle in the next 10 years, and corporate earnings are expected to record double-digit increases.
Dan Fineman, the bank’s co-head of equity strategy in the Asia-Pacific region, pointed out that the bank is optimistic about the Asian (except Japan) market. It is expected that by the end of next year, it will record a 19% increase, which is ideal than the 15% potential increase for the whole year. Sexual factors have become the driving force for the market to rise.
Among the structural factors, it is expected that the earnings per share growth will continue to improve, and there will be a much stronger rebound than expected.
The bank is optimistic about the market that can benefit from the elimination of the epidemic, is highly dependent on tourism and cyclical industries, has attractive valuations relative to global peers, and is highly vulnerable to currency appreciation stimulus measures.
Therefore, the bank recommends increasing its holdings in Hong Kong, South Korea, China, Thailand and Singapore stock markets; it also recommends increasing its holdings of cyclical stocks and growth stocks, and reducing its holdings of defensive stocks.
Credit Suisse
