Financial services company Credit Suisse is projecting a 20 percent upside in Asia Pacific excluding Japan equities in 2011 as it believes global industrial production is bottoming out earlier than expected.
Sakthi Siva, Credit Suisse global emerging markets and Asia- Pacific equity strategist, recommends that investors switch out of defensive markets and sectors into cyclicals like Taiwan region and South Korea on cheap valuations and sectors like technology, energy and materials.
Siva suggested a switch out of the "2007 club," which is given to markets that are trading above their 2007 level highs. These are markets like Indonesia, the Philippines, Malaysia, and India that have done very well this year as money flowed into domestically driven markets amid a weak global economy.
These markets are looking expensive and suggested a switch to more cyclical markets, She was quoted by the Business Times as saying on Thursday.
The year 2011 will mirror 2005 where the best performing country was South Korea and the best performing sector was energy, just as 2010 has mirrored 2004 in terms of market performance, she noted.
However, global financial services Morgan Stanley said it's less optimistic on emerging market stocks in 2011, advising caution in the first half as growth slows and inflation squeezes profit margins while prompting higher interest rates, the Business Times reported.
Sakthi Siva, Credit Suisse global emerging markets and Asia- Pacific equity strategist, recommends that investors switch out of defensive markets and sectors into cyclicals like Taiwan region and South Korea on cheap valuations and sectors like technology, energy and materials.
Siva suggested a switch out of the "2007 club," which is given to markets that are trading above their 2007 level highs. These are markets like Indonesia, the Philippines, Malaysia, and India that have done very well this year as money flowed into domestically driven markets amid a weak global economy.
These markets are looking expensive and suggested a switch to more cyclical markets, She was quoted by the Business Times as saying on Thursday.
The year 2011 will mirror 2005 where the best performing country was South Korea and the best performing sector was energy, just as 2010 has mirrored 2004 in terms of market performance, she noted.
However, global financial services Morgan Stanley said it's less optimistic on emerging market stocks in 2011, advising caution in the first half as growth slows and inflation squeezes profit margins while prompting higher interest rates, the Business Times reported.
