Asia PacificUpgrades of Asian corporate earnings at highest in 5 months - Refinitiv data
Gaurav Dogra
3 minute read
Analysts in April hiked 12-month earnings estimates for Asian companies by the largest amount in five months, data showed, as manufacturing activity and demand for the region s exports rose.
Analysts lifted forward 12-month earnings by 3.2% in April, the highest since December, according to Refinitiv data.
The big upgrades came as regional economies such as South Korea, Taiwan and Vietnam saw an increase in factory output and shipments thanks to a rise in demand from developed economies which are making a fast recovery from the coronavirus crisis.
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By Syndicated Content
By Gaurav Dogra
(Reuters) â Analysts in April hiked 12-month earnings estimates for Asian companies by the largest amount in five months, data showed, as manufacturing activity and demand for the regionâs exports rose.
Analysts lifted forward 12-month earnings by 3.2% in April, the highest since December, according to Refinitiv data.
The big upgrades came as regional economies such as South Korea, Taiwan and Vietnam saw an increase in factory output and shipments thanks to a rise in demand from developed economies which are making a fast recovery from the coronavirus crisis.
(Graphic: MSCI Asia-Pacific indexâs estimates change: https://fingfx.thomsonreuters.com/gfx/mkt/jznvnrbdovl/MSCI%20Asia-Pacific%20indexâs%20estimates%20change.jpg)
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Asia’s high-dividend-yield stocks have emerged as winners among regional equities this year as expectations grew for the economy to recover from the Covid-19 pandemic.
While stocks that pay relatively large dividends are rising globally, for the most part the gains are happening in-line with the wider market. Not so in Asia though, where MSCI Inc.’s key gauge for this category of shares has returned more than 9 per cent so far this year, beating the broader regional benchmark by almost five percentage points.
The index, which excludes the Japanese market and is heavily weighted to financials, information technology and materials companies, has also outperformed value stocks, a favorite of many investors the world over this year. Reasons for the strength range from a recovery in banks on expectations for higher interest rates to the rally in Taiwanese tech stocks.