Even after the recent rebound, Asia equities “remain quite cheap” historically and relative to the rest of the world, as well as compared with local bond rates, said Adrian Zuercher, head of Asia Pacific asset allocation at UBS Global Wealth Management CIO.
HONG KONG: The world of stocks has changed a lot in just three weeks. At least seven Asian markets have rebounded more than 20% from their March lows, pushing the region’s benchmark to a level just 3% away from technical bull territory.
Yet, this sharp rebound is facing a real test in the coming weeks - earnings. The unfolding reporting season will be the first chance for many investors to gauge the coronavirus impact on businesses. And for some bulls, it may even lead to opportunities to add positions. While money managers’ playbooks vary, the bottom line is clear: volatility may return anytime.
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