Robeco Asset Management, headquartered in Rotterdam, Netherlands, has forecast that the second half of this year will present investment opportunities in Asian stock markets. Robeco Asset Management, with total assets under management (AUM) reaching $237.7 billion, operates in 13 countries.
On July 17, Joshua Crabb, Head of Asia-Pacific Equities at Robeco Asset Management, held a 'Second Half Global Equity Market Outlook Briefing' at FKI Tower in Yeouido, Seoul. He assessed, "Asian stock markets are undervalued compared to the United States."
He explained, "Since the sharp decline in the US stock market in April, there has been a growing sense that US market exposure is excessive," adding, "More investors are now considering diversification."
He estimated that over the past 10 years, the proportion of global investors' holdings in US equities has increased from 9% to 18%. He believes that if this concentration on the US eases, stock markets in countries outside the US, including Asia, could see strong upward momentum. He also pointed out that President Donald Trump's tax policies could trigger capital outflows. Section 899 imposes a progressive tax of up to 20% on the US income of foreign investors.
Crabb analyzed, "A weaker dollar works in favor of value stocks," and added, "Europe and China have sufficient capacity to expand fiscal spending compared to others."
He explained the reasons for increasing investment in Asia by country. He noted, "In the past, Japan implemented shareholder return programs," and explained, "Initially, many investors were skeptical, so the gains were not large." He continued, "Korea will likely go through a similar process," adding, "Companies related to power grids, nuclear power plant supply chains, and the defense industry have established competitiveness." He emphasized that there are opportunities to generate excess returns in Korea.
Regarding the Chinese market, he pointed out that it is currently at a low point in terms of performance and return on equity (ROE). However, considering the macroeconomic situation, he advised that uncertainty remains, so investors should focus on specific sectors such as pet care and animation. In China, the pet industry is growing as more young people are choosing not to have children.
Crabb commented on India and the ASEAN region, saying, "They are showing growth rates that could never be seen in the US or Europe."
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