The current higher interest rate environment is boosting the appeal of cheap Chinese stocks and promoting value investment approaches in Asia. Corporate reforms in Japan and South Korea are also supporting this value-focused investment strategy. M&G Investment Management is particularly interested in the low valuations of Chinese stocks. With Asian central banks taking a hawkish stance to protect their currencies, traditional safe haven assets like bonds are losing appeal, leading investors to turn to stocks for returns. Specific sectors like Indian infrastructure stocks, Korean reform beneficiaries, and Chinese domestic consumer and utilities industries are seen as safe havens in this changing environment.
Yahoo! News
Abhishek Vishnoi