Asia-Pacific stock markets topped global charts in the first half of 2021

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Individuals line up at a vaccination heart administering AstraZeneca Plc Covid-19 vaccines donated by Japan in Taipei, Taiwan, on Tuesday, June 15, 2021.

I-Hwa Cheng | Bloomberg through Getty Photographs

SINGAPORE — Asia-Pacific’s top-performing markets led world fairness markets within the first half of 2021.

Vietnam’s VN Index surged 27.6% within the first half of this 12 months ending June 30 — manner forward of the second-placed Taiex in Taiwan which jumped 20.5%, primarily based on CNBC’ calculations.

As compared, the S&P 500 gained 14.4% within the first six months of 2021, whereas the pan-European Stoxx 600 rose about 13.5%.

Winners

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In mainland China, the Shenzhen element — Asia-Pacific’s top-performing market in 2020 — continued to see positive aspects and jumped 4.78% within the first half of 2021.

Losers

The FTSE Bursa Malaysia KLCI Index in Malaysia was Asia-Pacific’s worst performing market within the first half of the 12 months, and dropped 5.8%.

The Philippines’ PSE Composite Index additionally declined within the first half of the 12 months, dropping 3.33%.

The losses got here as nations in Southeast Asia proceed to battle a resurgence of Covid infections whereas vaccination charges of their populations typically stay comparatively low.

Asia’s financial outlook

Trying forward, Asia is predicted to “broadly stay on a wholesome restoration path,” JPMorgan Non-public Financial institution’s Alex Wolf stated in a notice on Tuesday.

“For traders, the underside line is to count on continued divergence,” stated Wolf, who’s head of funding technique for Asia on the agency. “Vaccinations, progress drivers, and coverage are diverging extensively throughout the area, and traders want to take a position selectively and actively.”

The strategist highlighted three components that traders ought to monitor over the course of the remainder of 2021: China’s restoration, vaccination progress, and exports — specifically, semiconductors.

“We nonetheless favor Northeast Asia (China, Korea, and Taiwan) given their publicity to structural forces comparable to digitalization and semiconductor demand, however as vaccinations choose up the restoration will ultimately unfold to South and Southeast Asia supporting each their currencies and fairness markets,” he stated.

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