The nascent revival in North Asian equities is being touted as the start of a potential bull run as bets for China’s gradual reopening as well as the bottoming out of the chip industry intensify.
Strategists at Goldman Sachs Group Inc. expect Asia’s equity leadership to shift from Southeast Asia and India to markets like China and Korea next year, while Societe Generale SA says Taiwan’s tech-heavy market is also at an inflection point. Jefferies Financial Group Inc. has echoed similar views.
Stocks listed in Hong Kong as well as Korea and Taiwan have languished for most of the year owing to their heavy reliance on China’s economy, which has been crimped by stringent Covid controls and a property crisis. Meanwhile, domestic-demand driven southern markets of Indonesia and India boasted resilience. The tables have turned this month after a slew of positive policy moves by Beijing.
