Citigroup Bucks Trend of Bullish Views for Asia in 2020
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December equity trading has begun on a positive note, with Asia’s benchmark shooting up on a surprising recovery in China’s manufacturing data. But while market players are cheering, some observers are warning that things might not be all rosy ahead.
Citigroup’s global strategy team is one of these, saying it’s not the right time to turn bullish on Asia. Strategists led by Robert Buckland see only 3% upside in the MSCI Asia Ex-Japan Index for next year, to 670. That’s because earnings will expand just 3% in 2020, significantly below the analyst consensus of 14%, according Citi estimates in a note published Nov. 29.