Manulife Investment Management Sees Attractive Opportunities Outside the US Amid Anticipated Global Rate-Cutting Cycle

PR Newswire07-24

A pivotal shift in the economic landscape is anticipated as a reflection of the aggressive tightening cycle of 2023. The Asian credit market's positive momentum is expected to continue, offering ...

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}","selectors":"article","filters":"","directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2453501634","pubTimestamp":1721783100,"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"A pivotal shift in the economic landscape is anticipated as a reflection of the aggressive tightening cycle of 2023.The Asian credit market's positive momentum is expected to continue, offering attractive income and potential capital gains.\"Looking ahead, we believe these one-off inflationary factors will stabilize, allowing the Fed to cut interest rates towards the end of the year. This is crucial as interest rate cuts in a stable growth environment could unlock relative value in markets. For instance, US small-cap stocks, which have been highly leveraged to the interest rate cycle and trade at multi-decade relative valuation discounts, are poised to benefit. Additionally, attractive opportunities emerge outside the US in both developed and emerging markets, particularly in Japan and India. In terms of sectors, energy and commodities should also be on investors' radar as well. We observe emerging opportunities across ASEAN markets and as we progress through an easing cycle there will ","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["rate"],"viewcount":null,"language":"en","relate_stocks":{"MFC":"宏利金融"},"translate_title":"宏利投资管理在预期的全球降息周期中看到美国以外的诱人机会","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"MFC":1},"content_text":"A pivotal shift in the economic landscape is anticipated as a reflection of the aggressive tightening cycle of 2023.\nThe Asian credit market's positive momentum is expected to continue, offering attractive income and potential capital gains.\nWith easing headwinds and attractive valuations, there could be a potential re-rating in Asian equities with pockets of opportunities in China, India and South Korean Electric Vehicle (EV) sector.\n\nHONG KONG and SINGAPORE, July 24, 2024 /PRNewswire/ -- Reflecting on the aggressive tightening cycle of 2023, Manulife Investment Management (Manulife IM) now anticipates a pivotal shift in the global economic landscape. At its 2024 Mid-Year Investment Outlook Media Briefing today, Manulife IM revealed that the US interest rate has likely peaked and expects the US Federal Reserve (Fed) to join the global easing cycle later this year.\n\n\n\nInflation is expected to align with the Fed's targets, while employment is not anticipated to exert upward pressure on services inflation. Despite these favorable trends, a fundamental slowdown in the US economy is expected, driven by tightening conditions for businesses and consumers. This nuanced outlook underscores the importance of strategic adaptability for investors in the evolving economic environment.\nLuke Browne, Head of Asset Allocation, Asia, Manulife Investment Management, said: \"We believe the global economy remains in decent shape as we stand here at the midpoint of the year. Leadership from an economic perspective remains with the US, driven by strong consumer activity, despite some recent cooling. Economies like Europe, Japan, and China have shown signs of stabilization and improvement, with policymakers intervening to support challenged sectors such as the property market in China.\"\n\"The pace of disinflation globally, particularly in the US will be our focus for the remainder of the year. Central banks in developed countries like Switzerland, Canada, and recently the European Central Bank have cut rates over the past several months. However, the US Fed has been more cautious due to persistent inflationary factors like auto insurance and shelter costs, which have caused disinflation to progress unevenly.\"\n\"Looking ahead, we believe these one-off inflationary factors will stabilize, allowing the Fed to cut interest rates towards the end of the year. This is crucial as interest rate cuts in a stable growth environment could unlock relative value in markets. For instance, US small-cap stocks, which have been highly leveraged to the interest rate cycle and trade at multi-decade relative valuation discounts, are poised to benefit. Additionally, attractive opportunities emerge outside the US in both developed and emerging markets, particularly in Japan and India. In terms of sectors, energy and commodities should also be on investors' radar as well. We observe emerging opportunities across ASEAN markets and as we progress through an easing cycle there will be opportunities to take advantage of.\"\nAsia Fixed Income: Positive momentum expected to continue\nMurray Collis, Senior Managing Director, Chief Investment Officer, Asia (ex-Japan) Fixed Income, Manulife Investment Management highlights that the performance of Asian credit has stood out year to date compared with other fixed income asset classes and there is a strong case for the positive momentum to continue into year-end, delivering attractive income and potential capital gains for investors.\nMr. Collis said: \"We have seen Asian credit navigate a relatively volatile fixed income market at the beginning of the year due to the uncertain Fed outlook, as well as elections across Asia that have not had a significant impact on Asian bonds so far with policy continuity largely expected by the market.  While US investment grade bonds have been negatively impacted by the Fed holding off on cutting rates, Asian investment grade credit outperformed on the back of resilient fundamentals and favorable market technicals. Asian high yield credit's performance year to date was even more impressive, as stabilizing defaults and cheap valuations started to attract interest from investors.\"\n\"From an Asian credit perspective, we expect the positive momentum in the asset class to continue into the second half, backed by robust investor demand to meet the expected pick-up in gross new issuance. Asia's economic fundamentals remain resilient and continue to drive global growth. Relative to developed market credit, Asian credit continues to trade at attractive valuations and is poised to draw interest from investors potentially looking for diversification benefits and to increase allocations to risk-assets when the Fed potentially lower rates later in the year. Investment grade credit remain attractive on a risk-adjusted basis, and we also see opportunities in the Asian high yield space as credit spreads trade at historically wide levels, offering investors an attractive entry point into the asset class.\"\nAsian Equities: Attractive valuations and growth opportunities\nDespite inflation being largely under control in Asia, persistent headwinds from higher US interest rates have constrained consumption and investment in Asian economies. However, Marco Giubin, Senior Portfolio Manager, Equities, Manulife Investment Management believes that easing headwinds combined with an upwards earnings revisions trend for Asia ex Japan and attractive valuation could catalyze a potential re-rating in Asian equities.\nMr. Giubin said: \"Asian equities are currently trading at a projected price-to-earnings (P/E) ratio of approximately 12 times their estimated earnings for the year 2025, with an expected earnings growth rate of over 15%. In contrast, US equities are trading at a much higher projected P/E ratio of 21 times their estimated 2025 earnings, with a slightly lower expected earnings growth rate of 14%. Asian equities appear to offer more attractive value, providing investors with the potential for higher earnings growth at a lower price relative to US equities.\"\nFrom a geographic standpoint, Manulife IM is now more constructive on China due to low valuations and more cautious market expectations. \"China's incremental policy responses are expected to mitigate the impact of weakness from the property sector. While India remains a strong structural story, our positioning is cautious given elevated valuations and the Modi government's slender majority, which raises questions about some drivers of its investment-led growth model. Consequently, we are starting to favor more consumption-related stocks that had underperformed industrial names before the Indian election.\"\n\"In North Asia, we have become incrementally more positive on Korea relative to Taiwan region, given valuations and the upcycle in Dynamic Random Access Memory (DRAM), while many of Taiwan region's tech stocks have re-rated significantly on the AI thematic despite many being only indirectly exposed. Additionally, many South Korean battery manufacturers have significantly underperformed due to concerns about EV market growth. We believe these names look extremely cheap given the growth opportunity that still exists. Recent protectionism against Chinese suppliers in markets like North America and Europe is likely to accelerate interest in South Korean EV supply chains as a substitute.\" Mr. Giubin concluded.\nAbout Manulife Investment ManagementManulife Investment Management is the brand for the global wealth and asset management segment of Manulife Financial Corporation. Our mission is to make decisions easier and lives better by empowering investors for a better tomorrow. Serving more than 17 million individuals, institutions, and retirement plan members, we believe our global reach, complementary businesses, and the strength of our parent company position us to help investors capitalize on today's emerging global trends. We provide our clients access to public and private investment solutions across equities, fixed income, multi-asset, alternative, and sustainability-linked strategies, such as natural capital, to help them make more informed financial decisions and achieve their investment objectives. Not all offerings are available in all jurisdictions. For additional information, please visit manulifeim.com. \nManulife Investment Management is the global wealth and asset management segment of Manulife Financial Corporation. The information and/or analysis contained in this material have been compiled or arrived at from sources believed to be reliable but Manulife Investment Management does not make any representation as to their accuracy, correctness, usefulness or completeness and does not accept liability for any loss arising from the use hereof or the information and/or analysis contained herein. Neither Manulife Investment Management or its affiliates, nor any of their directors, officers or employees shall assume any liability or responsibility for any direct or indirect loss or damage or any other consequence of any person acting or not acting in reliance on the information contained herein.\nThis material was prepared solely for educational and informational purposes and does not constitute a recommendation, professional advice, an offer, solicitation or an invitation by or on behalf of Manulife Investment Management to any person to buy or sell any security. Nothing in this material constitutes investment, legal, accounting or tax advice, or a representation that any investment or strategy is suitable or appropriate to your individual circumstances, or otherwise constitutes a personal recommendation to you. The economic trend analysis expressed in this material does not indicate any future investment performance result.   This material was produced by and the opinions expressed are those of Manulife Investment Management as of the date of this publication, and are subject to change based on market and other conditions. Past performance is not an indication of future results. Investment involves risk, including the loss of principal. In considering any investment, if you are in doubt on the action to be taken, you should consult professional advisers.\nProprietary Information – Please note that this material must not be wholly or partially reproduced, distributed, circulated, disseminated, published or disclosed, in any form and for any purpose, to any third party without prior approval from Manulife Investment Management.\nThese materials have not been reviewed by, are not registered with any securities or other regulatory authority, and may, where appropriate, be distributed by the following Manulife entities in their respective jurisdictions. \nIndonesia: PT Manulife Aset Manajemen Indonesia. Malaysia: Manulife Investment Management (M) Berhad Registration No: 200801033087 (834424-U). Singapore: Manulife Investment Management (Singapore) Pte. Ltd. (Company Registration Number: 200709952G). Vietnam: Manulife Investment Fund Management (Vietnam) Company Limited. Australia, South Korea and Hong Kong SAR: Manulife Investment Management (Hong Kong) Limited in Hong Kong and has not been reviewed by the HK Securities and Futures Commission (SFC). Philippines: Manulife Investment Management and Trust Corporation. Japan: Manulife Investment Management (Japan) Limited. Taiwan region: Manulife Investment Management (Taiwan) Co., Ltd. (Investment is not protected by deposit insurance, insurance guaranty fund or other protection mechanism in Taiwan. For the disputes resulted from the investment, you may file a complaint to the Securities Investment Trust & Consulting Association of Taiwan. or Financial Ombudsman Institution. License No. 110 Jin-Guan-Cheng-Tou-Xin-001 \"Independently operated by Manulife Investment Management (Taiwan) Co., Ltd.\" /3F., No.97, Songren Rd., Taipei, Taiwan 11073, Tel: (02)2757-5999, Customer Service: 0800-070-998.)\n\n\n\n\nDisclaimer: unless otherwise stated, all the performance information mentioned is as of 18 July 2024. \n\n\n\n\n\n\n\n\n\n\n\n\n\n View original content:https://www.prnewswire.com/apac/news-releases/manulife-investment-management-sees-attractive-opportunities-outside-the-us-amid-anticipated-global-rate-cutting-cycle-302204353.html\nSOURCE Manulife Investment Management","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.26.3","shortVersion":"4.26.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2453501634"}