UBS is tactical 'overweight' on Asia ex-Japan equities in 2020

Singapore

ASIA'S largest wealth manager UBS has taken a tactical "overweight" allocation on Asia-ex Japan equities, taking a bet that Chinese Internet players and 5G beneficiaries will see a boost in 2020.

But this comes with a caveat as geopolitical uncertainties will continue to roil markets.

"We expect Asia ex-Japan's earnings growth to recover in 2020, led by tech-heavy markets like Korea and Taiwan, which should benefit from the 5G rollout," UBS said in a recent equity outlook report.

"The recent tech-led lift in activity in Asia adds to our confidence that global industry will turn around in the first half of 2020, and infrastructure investment is increasing throughout the…