With just two weeks to go before the brand-new year begins, many fund managers around the entire world seem to agree on one thing: The rally in Asian stocks will continue into 2018.
Strength inside the equity market, they said, will be supported by regional economies growing strongly in addition to solid company fundamentals of which will drive earnings inside the next 12 months.
Stock markets globally have rallied for much of 2017, with the MSCI All Country World Index climbing more than 22 percent by the end of November. The MSCI All Country Asia Pacific Index rose at a stronger rate of 29 percent during the same period.
JPMorgan Asset Management, BlackRock in addition to Value Partners are some of the investors which has a bullish view on Asian stocks.
“We’re particularly positive on Asian markets, particularly North Asian countries. For example, Hong Kong in addition to China I think are still very strong in terms of corporate earnings in addition to also PMI (Purchasing Managers’ Index) in China is actually still over 50 in addition to we believe of which will continue to maintain at a strong level during 2018,” Kelly Chung, senior fund manager at Value Partners, told CNBC on Monday.
The PMI is actually a measure of economic activity. A reading above 50 indicates expansion, while a reading below of which signals contraction.
Chung’s view echoed those of major investors globally, including the entire world’s largest money manager BlackRock, which said last month Asian equities were still cheap relative to historical levels in addition to various other asset classes.