Selected Asian Stocks” to Target Now that the Global Market is Volatile

It has been a little more than three weeks since Russia launched its invasion of Ukraine, but there is no sign of an end in sight, and stock prices in markets around the world have been fluctuating wildly due to the uncertainty of the situation. If you are afraid to buy more Japanese or U.S. stocks under these circumstances, you may want to stock up on “Asian stocks” traded in Hong Kong and ASEAN countries. One of them is

This year, stock markets in developed countries have fallen sharply due to concerns about rising interest rates and the invasion of Ukraine. The reason Southeast Asian stocks have fallen less in comparison is that the impact of the war is less than in Europe and the United States, but also because medium- to long-term growth is still expected. The timing of the current price decline is a perfect buying opportunity,” said Nobuhiro Tomatsu, President and CEO of Global Link Advisors.

Major online securities firms such as SBI Securities and Rakuten Securities are expanding their offerings of Asian stocks, which can be purchased online in the same way as Japanese and U.S. stocks, although there are differences in commissions and exchange rates. Let’s take a look at the characteristics of each country’s market and the stocks to target.

First, stocks traded on the Hong Kong Stock Exchange. Stocks whose headquarters are registered in mainland China but listed in Hong Kong are called “H-shares,” and many of them are companies involved in China’s national policies, such as oil and electricity. Many of these companies are linked to China’s national policies, such as oil and electricity,” says Tetsuro Gunji, an analyst in the China editorial department of Asia Research.

With Russia blocked from global economic activity, the presence of slow-growing Chinese companies could increase again.” In addition, China is a country where President Xi Jinping has set a goal of achieving carbon neutrality, and when the central government makes such a proposal, both local governments and companies will follow the policy. Given this trend, Longyuan Power and China Guang Nuclear Power, both of which are involved in decarbonization, are good buying opportunities.

In addition, Shenzhen-based BYD is focusing on the development of electric vehicles along with lithium-ion batteries. It has formed a research partnership with Toyota Motor Corp. and is expected to become well known in Japan in the future.”

Next, how about Vietnam, which maintained a positive economic growth rate even with the Corona disaster? Vietnam has two stock markets, the Ho Chi Minh City Stock Market and the Hanoi Stock Market, and the Ho Chi Minh City Stock Market, where many large companies are listed, is the main market. The Ho Chi Minh Stock Market, where many large companies are listed, is the main market.

Vietnam is growing into the world’s second largest factory after China, and labor costs are still low, so there is still room for growth. Vietnam is expected to be the first country to see a recovery in domestic demand, with a high corona vaccination rate and a GDP growth rate of more than 6% in 2010. This high growth is supported by the state-owned Petrovietnam Group.

For example, PetroVietnam Drilling boasts a domestic share of over 70% in the oil drilling business. With oil prices rising as a result of the U.S. and U.K. bans on imports of Russian crude oil and natural gas, the company is likely to attract a lot of attention.”

Also of note is Petrovietnam Chemical Fertilizer, a member of the same group. The company is the top domestic producer of nitrogen-based fertilizers, but the key point is that Russia is one of the world’s leading fertilizer suppliers. If exports are halted due to economic sanctions, global fertilizer prices will rise, naturally increasing the need for companies like the company. This is truly a target stock.

So, what are the characteristics and investment merits of the stock market in the Philippines, an island nation located east of Vietnam across the South China Sea? Securities analyst Kento Machida, author of “An Introduction to Investing in the Philippines for Solid Profits in the Age of Side Businesses” (Gentosha), explains.

The Philippine market is still in its infancy, with only about 270 listed companies and no global fund money flowing into the country due to the lack of short selling and margin trading. However, with the prospect of long-term economic growth, now is the best time to enter the market. Also, unlike Japanese stocks, where the minimum number of shares to purchase is 100, you can start investing in companies with high market capitalization from a small amount.

For example, AC Energy, the Philippines’ leading conglomerate is Ayala Group, which is becoming a worldwide company in the energy business, has a minimum purchase price of 200 You can buy from around $0.00. Ayala Land, a developer of urban development projects in downtown areas, can also be purchased for around 8,000 yen for 100 shares.

Strength in mobile and telecommunications

Population growth is a major key to economic growth, and it is estimated that the Philippines’ population will continue to grow over the long term, especially among ASEAN countries. The Philippines has a high level of consumer confidence, and as an English-speaking country, it can be expected to play an active role in the global market in the future. Industries such as food service, leisure, and fashion, which have been facing headwinds in developed countries in recent years, are likely to continue to show signs of growth in the Philippines.

The brewing company Emperador has the world’s top share of the brandy market and is riding a wave of growth, including being included in the Philippine Composite Index this year. Jollibee, a fast food restaurant operated by Jollibee Foods, has become the Philippines’ national dish, and the company is aggressively expanding its business worldwide.

Also, on the Russia-related front, although it is not well known, the Philippines is one of Asia’s leading nickel-producing countries, and Nickel Asia Corporation is strong in the country. In recent years, the need for this metal has been rising as it is essential for the production of lithium-ion batteries, and economic sanctions against Russia, another producer, have further raised its price. Export volumes will continue to grow in the future,” Machida said.

Finally, let us look at the markets of Singapore and Indonesia, which have seen remarkable growth in recent years.

First of all, Singapore has announced the implementation of economic sanctions against Russia, ahead of other ASEAN countries. Prime Minister Lee Hsien Loong’s decision to oppose Russia’s “might is justice” policy was a demonstration to Asia that Singapore, despite being a small city-state, is proud of its continued growth. Genki Ishihara, a financial advisor and financial planner, has the following to say about Singapore’s future.

“Singapore, however, will have to be watched closely until a key meeting of the ruling party later this year, as its relations with Russia, China, and other major powers may change depending on who succeeds Prime Minister Hsien Loong. Meanwhile, in the economy, the prospects for increased investment and technological innovation in environmental policy and telecommunications look promising for related issues.”

A prime example is Keppel, a conglomerate with strengths in marine and energy. Keppel is transforming its business with the aim of “getting rid of oil,” and is attracting global attention as an SDGs stock.

Indonesia, which will hold the G20 presidency this year, has publicly stated that it aims to become a developed country by expanding exports.

President Joko has set forth three measures, including the export of 1 million automobiles by 2013, a plan to expand the capital’s high-speed rail system, and the promotion of economic digitalization, with the aim of achieving the goal of 204 The goal is to become one of the world’s top five economic powers by 2015. In particular, Indonesia is leading developed countries in some areas related to digital technology, and this should continue to be a strength of Indonesia in the future,” said Ishihara.

Telkom Indonesia, the largest mobile operator in Indonesia, is a state-owned company that leads the way in everything from telecommunications infrastructure to the promotion of digital transformation (DX). Astra International, which has the largest domestic market share in the automotive industry, is also expected to grow further in line with its policy of increasing exports.

Asian stocks, which have become an excellent buying opportunity, have unlimited growth potential. Investing for the long run is recommended.

From the April 1-8, 2022 issue of FRIDAY