The big, easy 'buy' story in Asia over; remain underweight on India: HSBC

HSBC has raised their 2021 global and EM gross domestic product (GDP) forecasts to 5.6 per cent (from 4.8 per cent) and 6.6 per cent (6.1 per cent), respectively

Substantial US stimulus is likely to create an overheating threat to emerging markets (EM) equities, said analysts at HSBC in an April 15 note. The only silver lining for EMs, they feel, is a dip in bond yields that can trigger an upside.

The research and brokerage house has maintained an ‘underweight’ rating on India, Taiwan and Pakistan. Hong Kong, Singapore, Thailand and Indonesia is where HSBC remains 'overweight', while remaining 'neutral' on Mainland China, Japan, Philippines, Malaysia and Korea.

"The big, easy buy story in Asia looks over; we’re now in for a tough grind