Stock Market

Investors bullish on Asia Pacific region, overweight on China, India

Investor sentiment is increasingly optimistic on Asia Pacific, and within the region investors are most bullish on cand India, says a Credit Suisse survey.

Credit Suisse conducted a sentiment survey at its Asian Investment Conference during March 27-30, that saw participation from thinkers, policy makers, political leaders and over 330 companies from 15 countries in the region.

The conference also attracted over 2,500 institutional investors, hedge funds and high net worth individuals collectively representing more than USD 18 trillion in assets under management.

Attendees chose Asia excluding-Japan as the region most likely to outperform, followed by Europe and the US.

Respondents said US trade policies were the biggest risk to markets followed closely by the threats from European geopolitical issues.

Around 56 per cent of the attendees were of the view that the Asia Pacific index will be up over 10 per cent this year, with another 34 per cent expecting it to be flat.

Within the Asia Pacific region, investors were most bullish on China and India, while Pakistan, Malaysia and Australia were the markets where investors were most underweight on.

Majority of participants chose Asia excluding-Japan as the region likely to provide the greatest upside for equity investors.

About 49 per cent of this year’s participants chose Asia ex-Japan as the region most likely to outperform the rest. This was followed by 26 per cent for Europe and 17 per cent for the US. Only 5 per cent of the respondents chose Japan.

“Time will tell if they are right, and if this is finally Asia’s year to shine,” Credit Suisse added.

Sector wise, financials and technology were the two most liked sectors, while utilities was among the least liked sectors, the survey said.