Asia Pacific equities may have rallied 13% in the first six weeks of the year, but fears of a rise in interest rates have erased their solid gains, says Winnie Chiu, equities adviser at Indosuez Wealth Management’s markets, investments and structuring division.

“The Asia Pacific markets have been relatively flat since the middle of February. Asia in particular has been weak due to a number of factors, including policy tightening, inflationary worries and internet regulations,” adds Chiu.

However, underpinned by anticipation of better earnings, Asia Pacific stocks are expected to do better in the year ahead. Speaking at Indosuez Wealth Management’s 2H2021 outlook presentation, held virtually, Chiu notes that earnings estimates have been revised upwards by 5% this year and 4% in 2022, led by Taiwan and Australia equity markets.

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