Asian Stock Market 2016
In the face of rising rates in U.S. and economic slowdown in China, Asia seems caught between a rock and a hard place.
But the growing dependence of Asian countries from debt financing also means that the region has doomed itself to this situation while searching for growth. And yet, where the door closes, a window opens, so let's see which countries of Asian Stock Market 2016 will be able to surprise investors in the coming year.
1. Thailand: During the long six months, stock managers and analysts are waiting for a turnaround in the economy. Sooner or later it will come. And the stock asian market suffered from the Exodus of "hot" money in 2015, is seen as one of the most attractive asian markets in the region. For example, after lowering its forecasts on the profitability of the shares, Siam Commercial Bank (BKK: SCB) lost 20% and now their value is just 10 times higher than projected profits.
2. India: The pace of India's economic growth at 7.7% remains unrivalled both with corporate profitability. In addition, India is less vulnerable to the growth rates in the United States than its Asian Stock Market 2016 neighbors. Promising example: the operator of hydro power plants NHPC limited (NSE: NHPC limited), the price of which is just 65% of book value.
3. Indonesia: The share of dollar debt to total debt is one of the highest — about 50%. But it is not the same for all companies. So, as Thailand and Australia, Indonesia is quite able to give investors a pleasant surprise. Probably, the government of President Joko Widodo will boost infrastructure investment, while the Central Bank will lower rates. Although the projected 4.9% GDP growth is too low to please the young and unemployed consumers, yet it remains one of the highest in the region. An example of interesting company: Adaro Energy (OTCMKTS: ADOOY). The company's shares are now half the price compared to the normal rating.
4. South Korea: The stock asian market of this country can be described in one word: cheap. Morgan Stanley absolutely reasonable has raised the Korea rating to "buy". The value of shares traded on the Seoul stock exchange, is below book and is almost 50% less than the historical average, despite rising dividends. Morgan analysts said, that the housing market is recovering, which could encourage consumers. And the cuts should lead to the devaluation of the Korean won relative to the yen and to provide help for exporters. An example of a promising company: SK Hynix memory chips manufacturer (KRX: 000660).
5. Philippines: Due to the presidential elections next summer, the investment ideas of the government so far are overshadowed, and at first come a flirtation with voters. Due to this, corporate profits should remain at the same level, as well as GDP growth. It is projected at 5.9% and is one of the highest in Asian Stock Market 2016. Promising company: Megaworld developer. Jefferies Investment firm has assigned a Megaworld rating of "buy".