Market Overview

Should Investors Consider Emerging Markets, Asia? These 2 Pros Say Yes

Should Investors Consider Emerging Markets, Asia? These 2 Pros Say Yes

Asian markets are off to a rough start for the year after disappointing data from China, but with valuations at "rock-bottom levels," there's opportunity to be found internationally, according to Eastspring Investments' Ken Wong. 

Wong: Asian Pickup In Second Half Of 2019

The first half of 2019 could see a continuation of weakness in Asian markets, especially after disappointing Chinese manufacturing data for December, Wong told CNBC in a recent interview.

If Chinese economic data continues to cause concern in the coming months, the government could start taking action in the back half of 2019 to support the economy through policy easing, interest rate reductions and loosening of credit, he said. 

Supportive policies could help lift the 2019 outlook for Asian stocks, especially at a time when sentiment is so low, Wong said. 

Upcoming national elections in India could generate some "positive sentiments" for investors, he said: the country boasted the best-performing stock market in all of Asia, and earnings growth is expected to come in "upwards of 20 percent" in 2019.

"All it takes is some positive sentiment, some good upwards earnings revisions," Wong said. "That could help boost up markets and overall sentiment and valuations."

What About Brazil?

The Brazilian national currency, the real, started rebounding after the election of Jair Bolsonaro as president, Damien Loh, chief investment officer at Ensemble Capital, said on "Bloomberg Markets: Asia." The priority for the new head of state is to show global markets the "honeymoon is over," but he will likely face difficulty in delivering on some of his reform promises, since he hasn't assigned ministerial posts to his coalition, Loh said. 

Related Links:

Volatile Start to 2019 Amid Weak China Manufacturing Data

You Can Ditch Brazil But Keep Latin America With This New ETF


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