Ample Upside Potential In Asian Stocks

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Osaka-based, Osaka Financial says the rout in Asian equities is over and stocks are poised for a strong rebound and advises investors globally to start positioning themselves in November and December, the two months that are historically the strongest period of the year.

Ample Upside Potential In Asian Stocks.

Osaka-based, Osaka Financial says the rout in Asian equities is over and stocks are poised for a strong rebound and advises investors globally to start positioning themselves in November and December, the two months that are historically the strongest period of the year.

That’s the consensus view expounded by Osaka Financial in a recent research note to institutional clients. The report continued that selling pressure that gripped Asian equity markets over much of the summer is largely spent and regional stocks are set to rebound strongly as the delays in increases in US interest rates looks less likely with every piece of worse-than-expected economic data.

“A significant portion of the selling we saw in China’s mainland indexes, Japan’s Nikkei 225 and other key Asian exchanges over the summer occurred because foreign investors liquidated stock to repatriate funds in anticipation of a September rate hike from the Fed, That, as we all know, failed to materialize,” wrote Charles Worth, newly appointed Executive Vice-President and Chief Investment Officer at Osaka Financial.

The firm’s positive outlook on Asian equities is not a recent development according to Worth. “Osaka Financial has made no secret of our skepticism towards the Fed rate hike narrative that’s dominated financial markets this year. We were always of the opinion that the US recovery was unsustainable and we positioned our clients accordingly, remaining in cash until the selling subsided before swooping in to buy blue chip stocks at heavy discounts. Clients are sitting on 20% gains in a matter of months,” he said.

Osaka Financial says it will release a revised conviction buy list which it says will reflect a strong bias towards new energy technology and Asian banking stocks.

“We think the Fed’s next major move will be to launch more stimulus and, when that happens, we expect a deluge of money to flow into Asian equities,” concluded Worth.

About Osaka Financial:
Contact:
+816 456 04970
http://www.osakafinancial.com

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Roland Winters
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