Asian equities seen gaining 3-4% following 'Phase One' deal

Singapore

WITH the US-China "Phase One" deal agreed last Friday diminishing a key overhang for equities and building hope toward a "Phase Two" agreement, Nomura expects Asian stocks to gain 3-4 per cent to close the year out.

Chetan Seth, Nomura's Asia ex-Japan equity strategist, said: "With tariffs postponed and a mini deal in place, a positive narrative is forming that might point to markets feeling the worst is over. Therefore, we are likely to see greater interest in equities."

As it stands, Asian equities have had a commendable year, with the MSCI Asia ex-Japan Index up 13.4 per cent, and the MSCI Asean Index up 3.8 per cent. With that in mind, the Japanese wealth manager remains cautiously optimistic on Asian equities in 2020 despite "valuations appearing somewhat optimally rich". It believes equities can still post sin…