The
Bank
of
America
released
its
latest
Asia
fund
manager
survey,
revealing
the
most
and
least
favored
markets
in
the
region
for
2024
—
and
named
one
sector
“at
the
helm.”
Of
the
fund
managers
surveyed,
a
net
17%
expected
the
Asia-Pacific
economy
ex-Japan
to
be
stronger
in
the
next
12
months,
with
most
“still
in
search
of
an
uptrend.”
The
survey
participants
comprised
254
people
with
$691
billion
in
assets
under
management.
However,
four
in
five
are
expecting
a
rise
in
regional
stocks
in
the
next
12
months
“on
the
basis
of
above-par
earnings
and
supportive
policy
against
a
backdrop
of
fair
valuations,”
the
investment
bank’s
analysts,
led
by
Ritesh
Samadhiya,
wrote
in
a
Dec.
19
note.
They
added
that
around
34%
of
the
fund
managers
expect
a
pick-up
in
profits
in
the
region
in
the
next
12
months.
Overweight
tech
The
fund
managers
surveyed
were
mostly
bullish
about
tech
for
2024,
“consistent
with
[their]
favorable
views
on
the
semis
cycle,”
BofA’s
analysts
wrote,
describing
it
as
the
sector
“at
the
helm”
in
asset
allocation.
Segments
they
like
include
semis,
tech
hardware
and
software.
They
were,
on
the
other
hand,
net
underweight
on
sectors
such
as
real
estate
and
utilities,
which
they
said
“remain
out
of
favor,
notwithstanding
the
retreat
in
bond
yields.”
The
fund
managers
are
overweight
on
what
they
call
“tech-heavy”
Taiwan
and
Korea.
Taiwan
is
home
to
semiconductor
giant
TSMC
and
South
Korea
to
Samsung
.
India
also
made
the
fund
managers’
top
four
markets
they
are
overweight
on.
Forecasts
for
the
South
Asian
country
have
been
strong.
In
October,
the
International
Monetary
Fund
hiked
its
growth
forecast
for
India
to
6.3%
for
both
this
year
and
next.
China
‘remains
unloved’
The
fund
managers
were
notably
bearish
on
China,
which
sat
at
the
bottom
of
a
list
of
12
markets
in
the
region.
“Investor
interest
towards
risk
assets
in
China
is
shockingly
low
–
majority
want
to
play
wait-and-watch
(34%)
or
look
for
opportunities
elsewhere
(28%),
rather
than
be
exposed,
given
their
belief
that
Chinese
households
will
stay
put
in
a
preservation
mode,”
BofA’s
analysts
said.
The
Chinese
economy,
still
reeling
from
the
Covid-19
pandemic
and
dogged
by
a
real
estate
debt
crisis,
has
been
in
a
funk
this
year.
Domestic
demand
has
remained
weak,
with
November’s
consumer
prices
falling
at
their
fastest
rate
in
three
years
.
Singapore,
Malaysia,
Indonesia
and
Australia
are
some
of
the
other
markets
those
surveyed
were
bearish
on.
Japan
‘atop
the
country
preference
list’
Optimism
on
the
Asian
giant
has
waned
among
the
fund
managers,
with
34%
of
those
surveyed
expecting
a
stronger
economy
in
the
next
12
months,
down
from
65%
in
November.
Nevertheless,
it
“sits
atop
the
country
preference
list,
as
cited
by
net
45%
of
investors,
with
a
tilt
towards
banks
and
semis,”
BofA’s
analysts
wrote.
Japan
caught
the
attention
of
several
investors
this
year,
including
Warren
Buffett,
who
said
in
May
that
he
had
raised
his
stakes
in
five
Japanese
trading
firms
to
7.4%
after
an
April
visit
to
Japan.
And
the
Tokyo
Stock
Exchange’s
company
governance
reforms
have
boosted
optimism
on
the
country’s
market.
—
CNBC’s
Michael
Bloom
contributed
to
this
report.
