China’s growth in 2018 was as per expectations, Asian stock markets may rise: Goldman Sachs

minutes 2019/01/24 06:30:33
China's News, China's Financial News,   stock market

Jan 24, 2019 (China Knowledge) - Timothy Moe, Chief Strategist at Goldman Sachs Asia-Pacific, has said that although the macroeconomic environment this year is not as good as expected, the Asia-Pacific stock market may have a 10% rise, driven mainly by earnings growth, rebound in valuation and dividends.

It is reported that the MSCI Asia-Pacific Index fell 16% last year. Therefore, global investors are dumping the securities in the Asia-Pacific region, and the amount of fund outflow in the Asian market has reached USD 48 billion. It is to be noted that global mutual funds remained "underweight" in the Asia-Pacific market. Because of the worrying economic outlook, the market does not expect the Federal Reserve to raise interest rates this year, or even cut instead. Meanwhile, the Federal Reserve's monetary policy has shifted, and the weakening of the dollar may lead to a stronger RMB against the dollar this year.

Another Goldman Sachs economist, Andrew Tilton, mentioned that last year's Chinese economic data were basically in line with expectations. Although the economy is slowing down, the government is expected to introduce policies to stimulate economic growth. On the other hand, Goldman Sachs is relatively optimistic about trade frictions, but tariffs may not able to return to their original low level in the short term.

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