After narrowly beating their US peers for the first time in three years in 2020, Asian stocks could see another strong year, analysts say.
Asia’s outperformance is seen continuing in 2021, with cyclicals expected to catch up to technology stocks as optimism over vaccine rollouts grows. Analysts on average predict that the MSCI Asia Pacific Index will rise about 8% over the next 12 months, versus an estimated 7% gain for the S&P 500 Index, Bloomberg surveys show.
A strengthening economic rebound in China and Asia’s low valuations relative to the US and Europe are also key positives that are seen helping regional stocks tide over potential risks arising from any fresh virus outbreaks, hurdles in vaccine distribution and worsening of Sino-American relations. Read more…..
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The Bank of England has warned that the economy is again shrinking sharply and won’t get back up to its pre-Covid level until the start of 2022.