Mint Quick Edit | India pips Japan among investors: Will it last?
Summary
A survey of fund managers has found India displacing Japan as Asia Pacific’s most favoured asset market, with China a distant third. Will this investor favour outlast today’s trade turbulence?
A survey of global fund managers by Bank of America Securities has identified India as the most favoured market in the Asia Pacific region, having moved ahead of Japan, even as China came a distant third. This is an endorsement of India’s broader economic appeal that has stayed strong despite global shocks and domestic disturbances.
Also Read: Mint Quick Edit | Stock market recovery: Are bulls stirring?
Notably, investor sentiment towards India has improved sharply, with investors a net 42% overweight on the country in May; they were 13% underweight in March. By that metric, investors have lost enthusiasm for Japan and China, both of which are significantly more export oriented and likely to be hit harder by trade turbulence.
Also Read: Tariff whiplash: The US truce with China offers hollow relief
It helps that India has positioned itself as a beneficiary of China-plus-one shifts in economic activity, but the survey doesn’t capture the potential effect of this week’s 90-day truce between the US and China that could lead to a durable pact between them.
Also Read: Will a US-China trade agreement work? Don’t count on it
Even if such a deal materializes, it should not distract global investors from India’s self-driven economic emergence, which is made of sterner stuff than trade flows. Ensuring that India is an attractive investment destination is a matter of policy self-reliance.
