Investment bank Citi deems Asian markets attractive after trade war hits
Citi Private Bank announced on Tuesday that they will continue to look for opportunities in Asia. There are several Asian stock exchanges that have received quite a beating due to the ongoing trade war between China and the USA. Citi claims that these stock exchanges are now attractively valued, so there are bargains on Asian markets.
Shares in China, Hong Kong, Taiwan and South Korea are among the biggest losers in the financial markets in recent months. Actually, since the trade war between the United States of America and China started. Ken Peng, chief strategist at Citi Private Bank, confirms the poor performance but remains optimistic and sees more and more opportunities.
Opportunities
In addition, the technology battle between the USA and China could create great opportunities for Taiwan and South Korea. If China abandons American products, Taiwanese and South Korean technology companies can fill this gap and benefit from the trade dispute.
It also helps that the US central bank will relax its interest rate policy. This gives Asian economies more room to look for stability. This could be a hopeful element for investors, possibly returning to Asian markets.
Steven Wieting, chief economist at Citi Private Bank, notes that international investors are underrepresented in these markets because of the risks and geopolitical tensions. But Wieting believes that these markets are attractively valued right now.
This week, US President Trump and Chinese President Jinping will meet at the G-20 summit in Osaka. Investors are eagerly looking forward to this meeting in the hope that both gentlemen will have good conversations that will hopefully lead to a trade agreement.
Sources: CNBC