Erwin Sanft, chief strategist for pan-Asia equities at BNP Paribas SA, comments on Asian equities in an interview on Bloomberg Television in Hong Kong. He is overweight on China, India and South Korea, meaning investors should buy more shares than are represented in benchmark indexes. He is underweight on Indonesia, an equivalent of a sell rating.
“India is a risk-on trade. There are problems there in terms of what’s happening in the macroeconomy.
But we cannot ignore the fact that India still has one of the best growth economies in the world. Another great thing about India is among large cap companies, there are many good companies to invest.”
“We are not saying this is a market you can forget about. We are just saying it got a bit overboard. Indonesia is one of the economies in Asia where we are going to see a return of high inflation much faster. That will be a big drag on the Indonesia market.”
On South Korea:
“Korea is a good combination of tech, industrials. There’s a lot of stocks we like, Hyundai Heavy, the shipbuilding sector, Hynix, technology sector.”