Abrdn Plc favours Chinese and Indian stocks on policy boost hopes

Abrdn Plc favors Chinese and Indian stocks over Japanese peers for the next three to six months, anticipating supportive policy moves that could attract fund inflows into these emerging markets. David Zhou, investment director of multi-asset and investment, highlighted that positive high-frequency data and effective policy implementations could drive a re-rating of China's equities. \r

Despite recent political shifts in India, Zhou remains optimistic about the country's macroeconomic outlook and earnings potential. Meanwhile, Abrdn has tempered its enthusiasm for Japanese equities due to waning cyclical advantages and a need for further corporate governance reforms. \r

Looking ahead, Zhou sees potential stimulus measures in China as crucial for market performance.