Goldman Optimistic About Asian Shares in 2015

Asia share markets are headed for a slightly better year after 2014’s low returns, but bigger gains will come from seeking reform beneficiaries in China and India, Goldman Sachs said.

“2014 has been another year with an unexciting headline return,” with the MSCI Asia Pacific ex-Japan index (MXAPJ) up only around 3 percent after a selloff in September wiped out earlier gains, Goldman said in a report Monday. But after the recent “concentrated” outflows, overall positioning in the region appears light, it said.

In addition, many Asia ex-Japan active funds are up only around an average 2.4 percent so far this year, underperforming the MXAPJ, it said.

“Performance pressure so far and a desire to amplify returns could drive broader re-risking from active funds,” Goldman said.

But even so, Goldman only expects the MXAPJ will rise to 520 by the end of 2015, compared with around 477 currently, for a single-digit return, amid conservative earnings growth forecasts and expectations valuations are already full.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza