UBS is bullish on China, Hong Kong and India.
UBS’ target for the Straits Times Index is 3,600 points – about 13% from yesterday’s close. It assumes a 12-month forward P/E of 16.4x., mainly due to the prospect of long-term Singapore dollar interest rates staying very, very low as capital comes in in anticipation of the Sing dollar appreciating.
Other views: “neutral” on Korea and Taiwan, and “underweight’ on Malaysia, the Philippines and Indonesia because it considers them expensive. Surprised on its view on Indonesia. Other brokers e.g. Nomura like it. As for M’sia don’t they know that an election is coming and there are plans to spend, spend on infrastructure.