Fund managers expect a 5% to 10% increase for Asian stocks: BofA survey

Based on a survey conducted by Bank of America, it has become clear that investors are predicting stable, albeit limited, returns from Asian stocks, excluding Japan, over the next 12 months. The optimistic expectations are linked to hopes for a recovery in the Chinese economy and improved financial results. According to a study conducted in early May, most fund managers expect returns within5%to10%from Asian stocks, excluding Japanese ones, over the next year. Notably,41%Respondents expect the Chinese economy to strengthen over the next year, which is a sharp increase from10%registered in February, as stated by Bank of America in its report.

The shift in expectations in the financial market occurred against the backdrop of an impressive recovery of Chinese stocks, which took place after years of lows reached in February. Beijing has also shown a willingness to implement a wide range of support measures for local stocks and the real estate market, which is one of the key issues for the economy. Fund managers also believe that there will be growth in the broader category of stocks, primarily due to strong financial performance in the coming year.

Bank of America noted that fund managers are maintaining“overwhelmingly positive”Attitudes towards semiconductor stocks, as well as the broader technology and industrial sectors, are positive.

At the same time, fund managers generally have little interest in Thailand, as the sharp decline in local markets caused by political unrest has not drawn attention to stocks as potentially profitable investments. Japan continues to be the top choice for fund managers. Despite Japanese stocks lagging behind regional competitors until April, according to a Bank of America survey, this trend has persisted.

Even when Japanese markets reached record levels in the first quarter of this year, many fund managers still do not see signs indicating a high level for stocks in the country. The weak yen is also affecting such optimistic expectations, especially considering that the currency continues to remain at a low level.34-year lowsDespite instances of perceived government intervention, the Bank of Japan's policy will undoubtedly have a significant impact on the future dynamics of Japanese stocks, especially considering the bank's plans to tighten monetary policy.