Goldman Sachs: Asian Stock Market Will Continue To Rise Until The End Of The Year.

Goldman Sachs said: "Asia's regional stock market's recent recovery is lower than the previous decline. At present, this gap is expected to make up."

Goldman pointed out that

The benchmark S & P 500 index has recovered 95% of its recent decline, while the pan European Dow Jones Storck 600 index has recovered 64% of its recent decline. Meanwhile, Japan's Tokyo index has recovered 63% of its recent decline, while Morgan Stanley Capital Asia Pacific (excluding Japan) index (MXAPJ) has recovered only 32%.

Goldman Sachs added that the Asian index, which hit a high level since the beginning of 3 in September, dropped 10% in October 16th and has only recovered 3% so far.

Goldman Sachs maintains its right.

The index has a year-end target of 500, and now the index is 482.

Goldman Sachs said that after a round of callbacks, stock valuations in Asian markets have also become more attractive. The same weighted P / E ratio in Asian stock markets has dropped to 15.6 times from the recent 17 times, slightly higher than the long-term average.

In addition, Credit Suisse said that Asia Pacific stocks had a 12 month forward price earnings ratio of 12.2 times, slightly less than the five-year average price earnings ratio of 12.5 times.

According to data from Jefferies, foreign investors withdrew $14 billion 600 million from the Asia Pacific mutual fund and the exchange traded fund (ETF) in the past four weeks, while other investors withdrew $2 billion 390 million of capital.

Goldman Sachs said that although the outlook for earnings growth in the Asia Pacific region is moderate, it should help to support the rise in share prices.

Goldman Sachs said: "the good news from the current earnings season is enough to support the rally in the stock market until the end of this year," Goldman Sachs said, noting that 25% of the regional index companies in Asia have reported the third quarter's performance reports. The profits of the companies in the first nine months of this year reached 76% of the full year earnings forecast, which was unchanged from the historical average.

It is also believed that the Asian stock market recovery will also benefit from policy support. Goldman Sachs expects China to resume stable growth after disappointing economic data released in August, which will benefit from the moderately relaxed policies adopted by the Chinese government, including more lenient mortgage loans and lower interbank interest rates.

Goldman Sachs also pointed out that the fall in oil prices is helping countries such as India, Indonesia and Thailand to cut fuel subsidies bills.

Goldman Sachs also gave China and India a stock market rating that exceeded the overall performance.

Goldman Sachs also said that compared with companies operating in Europe, its preferred stock in the US is mainly due to the improvement of the US economic growth rate and the strengthening of the US dollar exchange rate.