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Five Things to Watch in Asia Stocks Amid 2022 Reversal Hopes

  • Traders monitoring China pro-growth policy and stronger dollar
  • A China reopening could catalyze domestic and regional shares

Traders looking for a turnaround in Asian stocks in 2022 will be keeping a watchful eye on Chinese stimulus, the direction of the dollar, fading retail participation and the outlook for equity listings.

The case for a rebound should be aided by lower valuations after the MSCI Asia Pacific Index underperformed its global counterpart by around 20 percentage points last year. It declined some 4% with China’s regulatory crackdown and slower growth weighing on the index, but investors are hopeful that Beijing’s return to pro-growth policies and higher vaccination rates in the region will reverse the trend this year.