U.S. stocks rise on Fed cut bets; earnings continue to flow
Investing.com-- Investor optimism across Asia is gaining momentum as fund managers expect stronger growth and improved corporate profits over the next year, according to Bank of America’s latest Asia Fund Manager Survey.
The survey, which covered 193 fund managers overseeing $468 billion in assets, found expectations for Asia-Pacific ex-Japan economic growth at an 11-month high, while inflation forecasts hit historical lows.
About nine in ten investors expect regional equities to rise in the next 12 months -- the highest confidence level since early 2023.
China’s sentiment saw a marked rebound, with a net 8% of respondents now expecting stronger growth -- a sharp turnaround from April, when 59% foresaw weakness, according to the survey.
BofA’s “China Risk-Love” indicator climbed to its highest level since April 2021, reflecting rising confidence that Beijing will take further steps to boost demand.
Japan remained investors’ most favored market, with seven in eight expecting positive returns, BofA analysts said.
Participants cited corporate reforms, Bank of Japan policy normalization, and earnings growth as key market drivers. Roughly half expect the BOJ to raise rates by year-end, analysts added.
Across sectors, semiconductors, artificial intelligence, and financial services remained top picks, while energy and consumer staples lagged.
Investors also maintained positive views on Korea’s “Corporate Value-Up” program and India’s consumption and infrastructure themes, according to BofA.
Despite strong market rallies, valuations were seen only moderately stretched, leaving room for earnings upgrades, BofA added.