Robeco APAC CIO: Underweight China, Hong Kong

The transcript discusses the impact of FOMC decisions on Asian markets, focusing on interest rates and stock values. It analyzes the response of Asian markets to changes in US yields, highlighting differences in countries like Korea and Japan. The discussion covers the potential benefits of tapering for economic recovery and confidence. China's market position is examined, noting liquidity issues and regulatory risks affecting growth. The transcript concludes with a positive outlook on Asian markets due to strong earnings revisions, despite some commodity market corrections.

What is the significance of the FOMC's guidance for Asian financial markets?

• It sets the inflation targets for Asia.

• It influences Asian stock markets and interest rates.

• It determines the exchange rates.

• It regulates the Asian banking sector.

Why is Korea considered overweight in the investment strategy?

• Due to its declining interest rates.

• Because of its strong currency.

• Owing to higher interest margins in financial stocks.

• Due to its large technology sector.

What is a major concern regarding Chinese equities?

• High inflation rates.

• Regulatory risks affecting earnings growth.

• Lack of technological innovation.

• Over-reliance on foreign investments.

Which sectors in China are considered to have defensive opportunities?

• Healthcare and consumer goods.

• Automotive and manufacturing.

• Utilities and real estate.

• Technology and finance.

What is the outlook for earnings revisions in Asia?

• Earnings are expected to decline sharply.

• Earnings are stable with no expected changes.

• Earnings are expected to decrease due to high valuations.

• Earnings revisions have been strong, with some weakness in materials.