· Morgan Stanley says India stocks are ‘attractive’ relative to other emerging markets
Indian stocks have been outperforming other emerging markets for nearly six months and could continue to do so if supportive measures are in place, according to Morgan Stanley.
The outperformance began in April but the market’s short-term performance remains hinged to global factors, the U.S. investment bank said in a Oct. 9 report.
The MSCI India Index, which focuses on both large and mid-cap segments, is up 39.36% between mid-April till Oct. 14 versus a 26.7% increase in the MSCI Emerging Markets Index, according to data from Refinitiv Eikon. Meanwhile, the more narrowly focused Indian equity benchmarks, Sensex and Nifty 50, are up 34.28% and 34.12% respectively.
Three factors have helped India’s strong performance: an improving policy environment, corporate response to the pandemic and “an attractive starting point of valuations,” the bank said.
· Asian shares retreat as coronavirus surge hits sentiment
Asian stocks gave up early gains and fell on Friday, as a resurgence of coronavirus infections in Europe and the United States hurt risk appetite.
MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS dipped 0.22%. U.S. stock futures ESc1 also eased 0.12%.
· Nikkei falls as coronavirus resurgence in Europe hits sentiment
Japan’s Nikkei share average fell on Friday as new coronavirus curbs in Europe dimmed hopes of a swift global economic recovery, although losses were limited after Fast Retailing forecast upbeat annual earnings.
The benchmark Nikkei share average dropped 0.41% to 23,410.63. The broader Topix lost 0.86% to 1,617.69. For the week, the Nikkei was down 0.89% and the Topix lost 1.8%, with the latter being the largest drop in more than two months.
sentiment was weighed down after coronavirus restrictions were reimposed in Europe, with London entering a tighter lockdown and France imposing night curfews in major cities to curb a jump in COVID-19 cases.
Some investors also remained on the sidelines due to uncertainty over the U.S. stimulus talks, and ahead of the U.S. presidential election and earnings reports from domestic firms.
· China's blue-chip stocks post third weekly gains on upbeat data, policy support
China stocks were little changed on Friday but posted a weekly gain, buoyed by fresh policy support and upbeat data that pointed to an economic recovery from the COVID-19 fallout.
The blue-chip CSI300 index fell 0.2% to 4,791.68, while the Shanghai Composite Index added 0.1% to 3,336.36.
· European markets advance, seeking rebound from losses; Thyssenkrupp up 17%
European markets advanced on Friday morning, looking to bounce back from steep losses in the previous session, with the rapid spread of coronavirus through the continent remaining on investors’ radar.
The pan-European Stoxx 600 climbed 0.8% in early trade, with autos jumping 2.3% to lead gains as all sectors and major bourses entered positive territory.
Thyssenkrupp shares bounced more than 17% in early trade after reports that Britain’s Liberty Steel is lining up a takeover bid for the German conglomerate’s beleaguered steel unit.
Reference: Reuters, CNBC
Thai
Eng