Diverse Global Opportunities | J.P. Morgan
JPMorgan urges not to miss out on investment opportunities in Southeast Asia
According to the bank's analysts, investors are not investing enough in the Southeast Asian markets and may miss out on good opportunities.
Investors can avoid the Southeast Asian markets, but James Sullivan from JPMorgan sees opportunities in this region in the medium term.
«We have upgraded Indonesia, we have upgraded Thailand on the grounds that the position of investors in these markets is incredibly easy», – Sullivan, who is the head of analytical department at JPMorgan in Asia and Japan, told CNBC.
«We are looking at the opportunity to raise over $ 650 billion in total asset flow in emerging markets as a whole. In ASEAN, for the first time in years, investors underestimate literally every market», – said Sullivan, adding that the region would «interesting … in terms of reality versus perception».
«We do see … significant opportunities for medium-term results, especially in ASEAN», – analyst said.
JPMorgan is ‘overweight’ on emerging markets, particularly Asia for 2021
So far, Southeast Asia markets have been mostly among the worst in 2020. Many countries in the region are either struggling to cope with the coronavirus pandemic or are grappling with tangible loss of tourism revenue as restrictions restrict international travel.
At the close of trading on Wednesday, Thailand's SET Composite has dropped more than 10% YTD, while Indonesia's Jakarta Composite has dropped more than 9%..
The best market performers in Asia this year were in the manufacturing-oriented North Asian countries, which Sullivan said looks positive over the long term..
«From a global economic point of view, what we are seeing is actually a two-stage or two-speed recovery.», – he said. As the data continues to point to «extremely limited» service sector worldwide, manufacturing «comes back to life very well».
«We expect the overall economy in China and … some markets in North Asia to be better, Sullivan said. – In the long term, we continue to see the manufacturing economies of China and North Asia doing very well».