Equities in China and India are being touted as potential outperformers in Asia in the second half of the year as investors flock to emerging-market themes.
About a third of 19 Asia-based strategists and fund managers surveyed informally by Bloomberg News said they see Chinese stocks outstripping most over the next six months. A similar number picked India as their top bet while Japan was a distant third.
Anticipated Federal Reserve interest-rate cuts are seen acting as tailwinds for the two emerging markets, each of which offers its own unique narratives, too. Survey respondents preferred Chinese stocks for their low valuations and expected policy changes, while favoring Indian shares for their post-election optimism and relative immunity to geopolitical tensions.