MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.4% to their highest since July 2015 with Hong Kong, Taiwan and China among the region’s best performing markets.
“In China we have an overweight view on equities as we see improved corporate earnings outlook with the Chinese PPI (producer price index) turning around from deflation trend,” said Fan Cheuk Wan, head of investment strategy for Asia at HSBC Private Bank, with an overweight recommendation on China, India and Indonesia.
A rally in commodity prices in recent weeks led by copper and iron ore along with gentle policy tightening by Beijing via money market rates, had led to a more optimistic view of Chinese corporate earnings, analysts said.
Earnings growth for MSCI China is expected at nearly 15% over the next 12 months, slightly ahead of 13% projected for companies in MSCI Asia outside Japan, according to Thomson Reuters data.
Pictet Asset Management has cut its exposure to US markets due to expensive valuations, and has turned bullish on emerging markets in Asia, citing strong correlations with commodity prices.
Thursday, June 04, 2026
