Fed Repricing Gives Rise to New Equities Playbook in Asia

 

• Cheap Chinese shares, Japanese financials among favorites
• Delayed Fed easing has thwarted hopes for broad risk rally

A higher-for-longer interest rate environment is burnishing the credentials of cheap Chinese stocks and driving value investment strategies in Asia.

Corporate reforms in Japan and South Korea will support a value thesis, according to JPMorgan Asset Management and AllianzGI. Meanwhile, M&G Investment Management is attracted by near record-low valuations for Chinese stocks. Other haven plays are exporters and India’s domestic-driven equities.

https://www.bloomberg.com/news/articles/2024-04-28/fed-repricing-gives-rise-to-new-equities-playbook-in-asia