Asia’s Positive Stock Outlook Is Clouded by Chinese Selloff
- MSCI Asia Pacific Index lagging U.S., European peers this year
- Concerns over China market, stronger U.S. dollar hit sentiment
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The allure of Asian stocks is fading after beating global peers last year.
While 2021 began with investors expecting regional stocks to continue leading the global equity rebound as vaccine rollouts gather pace, that conviction now seems to be in short supply owing to a selloff in Chinese shares and concerns over dollar strength. The MSCI Asia Pacific Index is up just 3.1% year-to-date, compared with a gain of almost 10% each for equity benchmarks in the U.S. and Europe.