Home 2020 Asia-Pacific Stocks are Finishing this Year Strong

Asia-Pacific Stocks are Finishing this Year Strong


#AsiaPacific #stocks #earnings #growth


Asia-Pacific’s equity rally augurs a bright earnings outlook for Y 2021, strategists are upbeat across the board”— Paul Ebeling

Citigroup Inc., Goldman Sachs Group Inc. and Nomura Holdings Inc. have penciled in earnings growth of more than 20% for Asian shares in Y 2021.

Citi and Nomura are joined by Societe Generale SA in expectations for between a 5% and 7% rise in the MSCI Asia sans-Japan Index, while Goldman sees a 9% jump in the Asia-Pacific equivalent in Y 2021.

We remain optimistic about 2021 prospects driven by the macro and earnings recovery and would be buyers of any market pullbacks,” a team of Goldman strategists wrote in a note published Sunday.

Asian stocks are finishing this year in strong fashion with the MSCI Asia sans-Japan erasing its pandemic-related losses in the Summer and surging to a 18% YTD rise through Monday. Benchmarks in technology-heavy South Korea and Taiwan led the advances.

The prospects for profit growth looks strongest in SKorea, Citi analysts wrote in a note last week, projecting a 43% jump in EPS growth for Korean stocks in Y 2021.

Sector-wise, earnings growth is shifting to cyclical sectors, such as financials and materials, SocGen analysts wrote in a note published last month.

Further boosting returns in Asian equities next year will be expectations of an earnings recovery in Y 2022, according to Goldman.

With strong market returns this year and full valuations, the market has priced next year‘s earnings recovery: 2022 earnings will be the primary driver of 2021 returns,” the Goldman team wrote, expecting regional earnings to grow at 16% in that year.

Monday, the benchmark US major stock market indexes finished at: DJIA -184.82 to 29861.49, NAS Comp +62.17 at 12439.95, S&P 500 -15.97, 3647.50

Volume: Trade on the NYSE came in at 1.0-B/shares exchanged.

HeffX-LTN’s overall technical outlook for the major US stock market indexes is Bullish with a Very Bullish bias in here, there is no overhead resistance on the SPY, support is strong and deep + today’s action produced a doji.

  • NAS Comp +38.6% YTD
  • Russell 2000 +14.7% YTD
  • S&P 500 +12.9% YTD
  • DJIA +4.6% YTD

Looking Ahead: Investors will receive Industrial Production and Capacity Utilization for November, the Empire State Manufacturing Index for December, Export and Import Prices for November, and Net Long-Term TIC Flows for October Tuesday.

Have a healthy week, Keep the Faith!

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Paul A. Ebeling, a polymath, excels, in diverse fields of knowledge Including Pattern Recognition Analysis in Equities, Commodities and Foreign Exchange, and he is the author of "The Red Roadmaster's Technical Report on the US Major Market Indices, a highly regarded, weekly financial market commentary. He is a philosopher, issuing insights on a wide range of subjects to over a million cohorts. An international audience of opinion makers, business leaders, and global organizations recognize Ebeling as an expert.