JP Morgan Chase: Asian Shares Up, Risk Down

Traders and investors to expect “best” profit from Asian stocks as negative views subside in the first half of 2019.

Mixo Das, Asia equity strategist at J.P. Morgan says, “We’re expecting more upside in the first half … I think the best part of the returns you’ll have in Asian equities will be in the first half.”

During the end of 2018 investors worry on various factors that pressure global stocks. That includes the potential recession within the United States, slowing China’s growth and the tariff battle in both countries. And to consider, they are the largest economies globally. Such concerns lead to a global market sell-off. Of which might include stocks in Greater China, Japan, and South Korea along the big losers in the Asian market.

Das then notes that despite such events which investors’ fears might occur this year. The outcome isn’t as bad as most investors expect. He added, “As we get more clarity on the U.S.-China trade deal, China’s growth bottoming out at some time in [the first] half, and the U.S. economy averting a recession in 2019 — all these things essentially will reinforce that risks are coming down and that’s why equities are going to be going higher in the first half.”

He then notes that he prefers “value stocks” which are trading price below investors’ expectations within the first half of the year 2019. Shares within China, Singapore, and the Philippines are on the list that Das favors.

However, the growth of company earnings might slow down and weaken during the second half of the year. All might cause by interruptions on the trade front. Das says it starts hitting the global economic activities.

Approaching as good news to lift the regional stock prices surpassing the first six months of the year, Das says that “growth stocks” within firms that are with potential widening is to include in the top picks. Das notes that such an environment can initiate growth stocks towards “the best performers over the course of 2019.”