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JPMorgan sees Asian Tech stocks gaining another 15-20% this year
Asian technology stocks may rally another 15 per cent-20 per cent this year, driven mainly by the strong momentum in the artificial intelligence space, according to JPMorgan Chase & Co.
'AI will continue to lead this upcycle on the growth in datacenter capex in 2025 and more confidence in 2026 growth,' analysts including Gokul Hariharan wrote in a report. 'We are not advising any meaningful rotation away from AI stocks in the next three months and would prefer' to stick with the winners.
AI stocks are rapidly emerging as pivotal drivers of the region's equity markets, underpinned by a robust domestic appetite for automation and generative technology. A Bloomberg regional semiconductor index has risen over 12per cent this year to outperform an Asian equity gauge, and resilient demand for AI memory chips from big tech providers may drive further gains.
JPMorgan's top stock picks include the region's largest chipmakers, including Taiwan Semiconductor Manufacturing Co., SK Hynix Inc., Advantest Corp and Delta Electronics Inc. Those shares should continue their upward momentum in the next 12 months, as demand is not an issue and earnings will continue to be revised up, they wrote.
The bank is more cautious on non-AI stocks, such as makers of personal computers, smartphones and consumer devices. Earnings downward revisions may continue as the impact of China consumption subsidies fades, the report added.
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Mint
31 minutes ago
- Mint
Indian stock market: 10 things that changed overnight - Gift Nifty, Israel-Iran ceasefire to Jerome Powell's testimony
Indian stock market: The domestic equity market benchmark indices, Sensex and Nifty 50, are expected to open higher on Wednesday, following positive cues from global markets, after Israel and Iran agreed for a ceasefire. Asian markets traded higher, while the US stock market rallied overnight, with all three major US stock indexes gaining over a percent each. On Tuesday, the Indian stock market ended with modest gains after witnessing profit booking at higher levels. The Sensex gained 158.32 points, or 0.19%, to close at 82,055.11, while the Nifty 50 settled 72.45 points, or 0.29%, higher at 25,044.35. 'The Nifty's failure to surpass the 25,200-resistance level indicates that the bears are still active and not ready to give in. However, rotational buying across key sectors, along with notable strength in the midcap and smallcap segments, continues to offer trading opportunities. Participants are advised to maintain a positive yet cautious stance, with a strong focus on stock selection driven by sectoral trends,' said Ajit Mishra – SVP, Research, Religare Broking Ltd. Here are key global market cues for Sensex today: Asian markets traded higher on Wednesday, on optimism over a ceasefire between Israel and Iran. Japan's Nikkei 225 gained 0.12%, while the Topix fell 0.21%. South Korea's Kospi rose 0.44%, and the Kosdaq was flat. Hong Kong's Hang Seng index futures indicated a higher opening. Gift Nifty was trading around 25,160 level, a premium of nearly 88 points from the Nifty futures' previous close, indicating a positive start for the Indian stock market indices. US stock market ended higher on Tuesday as sentiment improved after a fragile truce between Israel and Iran. The Dow Jones Industrial Average rallied 507.24 points, or 1.19%, to 43,089.02, while the S&P 500 gained 67.01 points, or 1.11%, to 6,092.18. The Nasdaq Composite closed 281.56 points, or 1.43%, higher at 19,912.53. Tesla share price declined 2.4%, Nvidia stock price gained 2.59%, while Advanced Micro Devices shares jumped 6.83%. Lockheed Martin stock price dropped 2.6% and RTX Corp shares fell 2.7%. Coinbase Global and Microstrategy shares advanced 12.1% and 2.7%, respectively. Broadcom stock price rose 3.9%, while FedEx shares plunged more than 4% in extended trading. Israel and Iran agreed a ceasefire, ending 12 days of airstrikes, after US President Donald Trump joined the conflict, destroying key Iranian nuclear sites. The two nations signalled that the air war between them had ended, at least for now. Israeli Prime Minister Benjamin Netanyahu declared a 'historic victory' against Iran despite a US intelligence report concluding that American strikes set back Tehran's nuclear program by just a few months. Higher tariffs could begin raising inflation this summer, a period that will be key to Federal Reserve consideration of possible rate cuts, Fed Chair Jerome Powell told members of Congress. Powell said he and many at the Fed expect inflation to start rising soon, and that the central bank was in no rush to ease borrowing costs in the meantime. US consumer confidence unexpectedly deteriorated in June. The Conference Board said its consumer confidence index dropped 5.4 points to 93.0 this month, erasing nearly half of the sharp gain in May. Economists polled by Reuters had forecast the index increasing to 100.0. Crude oil prices rose as investors assessed the stability of a ceasefire between Iran and Israel. Brent crude futures gained 1.09% to $67.87 a barrel, while US West Texas Intermediate (WTI) crude prices rose 1.23% to $65.16. Gold prices held their ground as a tentative ceasefire between Iran and Israel dampened safe-haven demand. Spot gold price was unchanged at $3,326.39 per ounce, after hitting an over two-week low on Tuesday. US gold futures rose 0.2% to $3,340. The dollar struggled to regain lost ground on Wednesday amid optimism over a fragile truce between Israel and Iran. Against a basket of currencies, the dollar eased slightly to 97.91. Japanese yen steadied at 144.96 per dollar, the euro remained perched near its highest since October 2021 at $1.1621, and Sterling eased 0.02% to $1.3615. US Treasury yields declined, with the two-year and 10-year notes hitting seven-week lows. The two-year US Treasury yield fell to a 1-1/2-month low of 3.7870%. The benchmark 10-year yield was little changed at 4.3043%. (With inputs from Reuters) Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Time of India
33 minutes ago
- Time of India
What influences crude oil more? US bombs or Iran's silent allies
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Time of India
an hour ago
- Time of India
In Swiss they trust, though the banks are not as cool as before
Mumbai: Why are so many Indians parking money in Swiss accounts despite the alpine banks losing their once-famed secrecy? Who are these people? Is it forbidden funds- as one would suspect- or kosher money? Questions are popping out from numbers released by the Swiss National Bank, claiming that Indian money with Swiss banks trebled in 2024. What has happened? Some of the money flowing into the custody of these tight-lipped bankers may have a questionable colour. But, new rules in the UK and other countries, coupled with global uncertainties and choppy currency markets are driving many NRIs, wealthy families leaving India as well as rich residents to keep their money with Swiss banks, say financial advisors and lawyers familiar with such asset planning. According to them, most of the recent deposits piling up in Swiss banks are not 'black money' but funds of overseas Indians moving from other jurisdictions to Switzerland-many choosing to hold family wealth in Swiss foundations and trusts which are governed by friendly regulations. Switzerland offers a framework to recognise trusts formed under foreign law. (Join our ETNRI WhatsApp channel for all the latest updates) "The recent overhaul of the UK's non-dom rules has prompted many NRIs to relocate to either the UAE or Europe. Understandably, they are moving their wealth accounts. Singapore and Switzerland are the natural choices for holding such accounts. This could be the reason for increased remittance to Switzerland. Singapore and Switzerland are increasingly attracting global investors as evolved financial jurisdictions," said Moin Ladha, partner at the law firm Khaitan & Co. Live Events This year, the UK changed its 200-year old regime, causing many NRI families to look for second homes in other countries to escape high tax on overseas earnings and inheritance. The Swiss central bank data show that Indian money held through asset managers, insurers, and other financial intermediaries surged three times to 3.5 billion Swiss franc (or ₹37,600 crore), after falling to a four-year low in 2023. Money in customer (or retail) accounts of Indian clients rose only 11% in 2024. "The numbers point at a broader global trend of capital reallocation driven by regulations and tax," said Ladha. While there is no official statement from Swiss Banks about the reasons for the surge in Indian deposits, it reflects Switzerland's continued status as a trusted financial hub, said Isha Sekhri, who specialises in international and cross-border taxation. The strength and stability of the Swiss Franc amid geopolitical volatility, combined with its safe-haven reputation and agile regulations, make it an attractive destination for capital preservation, she said. While the Swiss currency slipped last year, it has appreciated 9.5% against the US dollar since January, and has outperformed its peers to close 2023 as the best-performing G10 currency. CONFIDENTIALITY LOST However, with countries signing pacts to share information on owners of bank accounts and other financial assets, Swiss banks have probably lost some of their lure to those stashing illicit money. As the Swiss revealed data on active and many closed accounts, the Indian Income tax department and the Enforcement Directorate invoked harsh laws against black money and laundering to question residents and serve notices to several NRIs. "Many of these accounts (linked to Indians) are held through investment vehicles or trusts where Indian individuals are 'ultimate beneficial owners' (UBOs), even if not named directly on the accounts. Enhanced global reporting standards could be contributing to greater visibility of such holdings," said Sekhri, partner at Isha Sekhri Advisory LLP. "Originally, many large families preferred keeping the names of beneficiaries under wraps. Here, Swiss confidentiality came handy, paving the way for estate planning along with tax avoidance," said Mitil Chokshi, partner at the CA firm Chokshi & Chokshi.
