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00:00[CC may contain inaccuracies] When it comes to China, does it again provide this countercyclical force to the rest of the emerging market asset class? Does it act to act as an anchor, given that we are still expecting gains for the economy and more gains for markets there as well? I would agree with that. I think when markets have major issues, you would have some companies taking more of a spotlight. And I think for China, definitely a very strong cyclical upturn that we are anticipating. After three years of fighting pandemic and I think the investors are willing to hold to to queue to see the numbers to come through. And then I think more broadly speaking, when China reopens, is has a very positive spillover effect to many parts of the very notably in Hong Kong, in Thailand, Singapore. This is the uplift from the tourism spillover. And then also, you know, it has a broader impact on the materials demand than commodities demand. Is China cheap enough just now to sort of offset its fundamental issues around the property sector, around really the uncertainty that comes with government crackdowns? Well, we look at MSCI China. If it's below nine times twelve months forward P, it is a screaming buy. And we had that in October last year. And then JP Morgan was pretty early in calling clients to position for the easing of mobility trade in the first week of November. At this point, it's closer to 11 times. All bullish target for the year is about tough times. I think pushing that beyond 13 14 people need to have a very different view on the geopolitical risks, but was in that range. I think there are a lot of investment opportunities. You mention other markets and might benefit from China's reopening. How does Korea and Taiwan really play into that calculation, given, of course, when we have seen a lot of pressure on the export side of things? Yeah, good question. I think when we look at Asia ex Japan, China is a market that trades at a bit of a discount because various concerns, but cyclical upturn is very impressive and the fund flows are coming back. Korea and Taiwan are deep cyclical markets tied to the global tech cycle. Now when we look at the younger days in tech earnings, they are down about 30 percent from peak to where it is over the past two years. And so that is consistent with the typical draw down in earnings in other major tech cycle correction. So I think at this point, you know, there is confidence that the the earnings have been sufficiently cut and there's going to be a rebound and so was in Asia, ex Japan. China's earnings trough to first has started to recovery in October. We see Korea and Taiwan, their trophy to a significant level and ready for a rebound, whereas South Asia, including India, they're still in that tromping process.

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South Korea, Taiwan Tech Stocks Ready for Rebound, JPMorgan Says

Wendy Liu, chief Asia and China equity strategist at JPMorgan, discusses China's reopening, its implications the region's stocks markets, and the opportunities she sees. She speaks with Haidi Stroud-Watts and Shery Ahn on "Bloomberg Daybreak: Asia." (Source: Bloomberg)

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