Folks line up at a vaccination heart administering AstraZeneca Plc Covid-19 vaccines donated by Japan in Taipei, Taiwan, on Tuesday, June 15, 2021.
I-Hwa Cheng | Bloomberg by way of Getty Pictures
SINGAPORE — Asia-Pacific’s top-performing markets led world fairness markets within the first half of 2021.
Vietnam’s VN Index surged 27.6% within the first half of this 12 months ending June 30 — means forward of the second-placed Taiex in Taiwan which jumped 20.5%, based mostly on CNBC’ calculations.
As compared, the S&P 500 gained 14.4% within the first six months of 2021, whereas the pan-European Stoxx 600 rose about 13.5%.
Listed here are the highest performing inventory markets in Asia-Pacific within the first half of 2021, based mostly on CNBC calculations:
Different Asia-Pacific markets that noticed strong good points embrace South Korea’s Kospi in addition to the S&P/ASX 200 in Australia, which every rose greater than 10% throughout the identical interval.
In mainland China, the Shenzhen part — Asia-Pacific’s top-performing market in 2020 — continued to see good points and jumped 4.78% within the first half of 2021.
The FTSE Bursa Malaysia KLCI Index in Malaysia was Asia-Pacific’s worst performing market within the first half of the 12 months, and dropped 5.8%.
The Philippines’ PSE Composite Index additionally declined within the first half of the 12 months, dropping 3.33%.
The losses got here as international locations in Southeast Asia proceed to battle a resurgence of Covid infections whereas vaccination charges of their populations typically stay comparatively low.
Asia’s financial outlook
Trying forward, Asia is anticipated to “broadly stay on a wholesome restoration path,” JPMorgan Personal Financial institution’s Alex Wolf stated in a word on Tuesday.
“For buyers, the underside line is to anticipate continued divergence,” stated Wolf, who’s head of funding technique for Asia on the agency. “Vaccinations, progress drivers, and coverage are diverging broadly throughout the area, and buyers want to speculate selectively and actively.”
The strategist highlighted three components that buyers ought to monitor over the course of the remainder of 2021: China’s restoration, vaccination progress, and exports — particularly, semiconductors.
“We nonetheless favor Northeast Asia (China, Korea, and Taiwan) given their publicity to structural forces similar to digitalization and semiconductor demand, however as vaccinations choose up the restoration will ultimately unfold to South and Southeast Asia supporting each their currencies and fairness markets,” he stated.