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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.