[ad_1]
The badessment of Das in the Asian markets contrasts with a number of other strategists who said Chinese stocks, in particular, could rise higher given the signs of economic recovery. Stefan Hofer, Chief Investment Strategist at LGT Bank, is optimistic about Chinese equities and told CNBC that they could potentially increase by 15% more.
Chinese equities posted some of the strongest gains this year, with the Shenzhen component and the Shanghai composite gaining 35.97% and 27.42%, respectively.
It will be difficult for Chinese equities to spread such gains in the coming months, said Hartmut Issel, head of Asia-Pacific equities at UBS Global Wealth Management. Nevertheless, the bank has maintained its "overweight" position in shares of the world's second-largest economy, Issel told CNBC's Street Signs on Tuesday.
He added that a potential easing of trade tensions between China and the United States and the first signs of a downturn in the Chinese economy meant that investors could still want to remain invested in stock markets.
For JP Morgan, staying invested in Asia means focusing on "growth stocks" – or on listed companies considered to have high growth potential, Das said.
He added that he had a slight preference for exporters meeting this requirement, but that growth stocks could also come from other industries such as manufacturing.
"This is our strongest call for the rest of the year.We believe that growth stocks will outperform by the rest of the year, given that we are going to stay in. positive territory, but a very weak trend, "said Das.
Source link
