The renewed rise in Covid-19 instances throughout Asia just isn’t a giant fear and the area’s economic system will get again on monitor when the outbreak eases, stated an funding strategist from Citi Personal Financial institution.
In opposition to such a backdrop, buyers may go after “Covid-impaired” shares equivalent to airways and different corporations within the journey and leisure sector, stated Ken Peng, the financial institution’s head of Asia funding technique.
Peng informed CNBC’s “Capital Connection” on Tuesday that Asia just isn’t experiencing a resurgence in Covid for the primary time.
“That is a film we have seen earlier than,” he stated.
A safety guard walks previous a wall mural depicting folks from numerous religions thanking frontline Covid-19 coronavirus warriors, in Mumbai on January 13, 2021.
Indranil Mukherjee | AFP | Getty Photos
“It occurred within the winter (that) simply handed and it additionally occurred final third quarter once we had these waves, after which as soon as the instances come down, you see the financial restoration again on monitor. So I feel that is not one thing we have to fear about too extensively,” he added.
Asian economies from Nepal to Malaysia and Taiwan have reported record daily increases in Covid infections in the previous couple of weeks, in line with information compiled by Johns Hopkins College.
Over in India, which has the world’s second-worst outbreak, day by day instances have remained elevated though trending decrease from record-high ranges in early Might, the info confirmed.
Along with sectors which have been hit laborious within the pandemic, Peng stated he sees alternatives to purchase Chinese tech stocks on the dip. He added that the share costs of a few of these shares have declined on account of regulatory scrutiny.
The strategist additionally stated he is “very constructive” on the commodities house, with demand from China, the U.S. and Europe doubtless staying resilient.
“These international locations which can be nearer to herd immunity are more likely to proceed to see commodity demand rising. So I feel as the worldwide restoration continues, we should not fear an excessive amount of about commodities for the time being,” stated Peng.