A number of stocks jumped in the afternoon session after the technology sector rallied, pushing the Nasdaq near all-time highs, as investors cheered a potential de-escalation of geopolitical tensions in the Middle East amid a flurry of positive news in the artificial intelligence space.
A number of stocks jumped in the afternoon session after the technology sector rallied, pushing the Nasdaq near all-time highs, as investors cheered a potential de-escalation of geopolitical tensions in the Middle East amid a flurry of positive news in the artificial intelligence space.
North Asia’s tech-heavy equity markets offer better risk-reward than their South and Southeast Asian peers that are relatively more vulnerable to the oil shock triggered by the Iran war, according to Goldman Sachs Group Inc. The investment bank has initiated a “relative value trade” by going long on South Korea and Taiwan, and shorting India, Philippines and Thailand, analysts including Kamakshya ...
North Asia’s tech-heavy equity markets offer better risk-reward than their South and Southeast Asian peers that are relatively more vulnerable to the oil shock triggered by the Iran war, according to Goldman Sachs Group Inc. The investment bank has initiated a “relative value trade” by going long on South Korea and Taiwan, and shorting India, Philippines and Thailand, analysts including Kamakshya Trivedi and Sunil Koul wrote in a note. While China’s economy is relatively better-placed in the current energy shock, “ earnings delivery will likely be needed to catalyze a stronger up move in the market,” they added. Equities in emerging markets have staged a stronger rebound than their global peers in April amid the optimism sparked by a two-week ceasefire deal between the US and Iran. Risk sentiment has stayed strong as the two sides are said to consider further extending the temporary truce. The MSCI Emerging Markets Index is up almost 15% so far this month, versus a gain of less than 9% for a gauge of world stocks. “We remain constructive overall as valuation and positioning had reset meaningfully,” the Goldman analysts wrote, referring to EM stocks. “Underlying profit growth is likely to be strong, with 16 percentage points of our 23% MSCI EM 2026 earnings growth forecast driven by AI-related demand, which should be relatively insulated from the direct impacts of the oil shock.” Outside of Asia, the analysts prefer Brazil due to “commodity tailwinds,” and favor South Africa for its “inexpensive valuations.” China Stocks Become Latest in Asia to Erase War-Driven Losses Investors Eye Latin America Again as Ceasefire Revives ETF Flows AI Stocks in Asia Lure Back Global Funds as War Tensions Ease
For one of India’s biggest bond fund managers, markets are overpricing the inflation risk from the Iran war and that is creating a buying opportunity. The surge in energy prices is a temporary shock and is unlikely to feed into inflation expectations, according to Manish Banthia , chief investment officer for fixed income at ICICI Prudential Asset Management Co. While interest-rate swaps are prici...
For one of India’s biggest bond fund managers, markets are overpricing the inflation risk from the Iran war and that is creating a buying opportunity. The surge in energy prices is a temporary shock and is unlikely to feed into inflation expectations, according to Manish Banthia , chief investment officer for fixed income at ICICI Prudential Asset Management Co. While interest-rate swaps are pricing in aggressive interest-rate increases, the central bank is unlikely to tighten policy even after the spike in oil, he said. Markets have rapidly repriced Indian debt on fears that higher oil prices will drive sustained inflation and force the Reserve Bank of India to raise rates sharply. The RBI is unlikely to hike until the economy shows clear signs of momentum, even if energy prices remain high in the near term, said Banthia, who oversees 2.5 trillion rupees ($27 billion). “The RBI does not need to hike interest rates and which is why when the market is pricing in so many rate hikes, I have to be bullish,” he said. Oil-driven inflation fears pushed India’s benchmark 10-year yields to a two-year high last week, while five-year rate swaps have surged over 30 basis points since the war began. The reaction suggests markets may be overshooting the long-term impact, Banthia said. Read More: Indian Households See Inflation Spiking Over Next Few Months That gap is key to his positioning. After staying cautious on adding duration for much of the past two years, Banthia is turning bullish as yields across most securities are at multi-year highs. At current levels, he said, investors are effectively locking in about 8% risk-free return on federal and state debt, a level that compensates for much of the inflation risk. “This is a very attractive time for fixed-income investors,” he said. Banthia is building positions in longer sovereign and state bonds, while keeping shorter-end exposure in corporate debt and money-market securities like commercial paper and certificates of deposi...