Daily Brief - 27 May 2024

Digital growth boosts Asia’s healthtech firms post-covid

Asia’s healthtech companies, like Alibaba Health and Apollo Hospitals, are turning to digital sales for growth after the pandemic. Alibaba Health expects a slight revenue increase, driven by its digital business, despite a slowdown in drug sales.

Apollo Hospitals' HealthCo unit surprised with a profit and secured a significant investment, though it fell short of investor hopes. The ongoing property crisis in China continues to impact corporate earnings, but new government measures offer some hope.

Meanwhile, Indonesian banks show strong growth, while Thai banks struggle with high household debt. Japanese firms are increasing dividends and buybacks to boost shareholder value.

European stocks stay flat since light trading with UK and US markets closed

European stocks remained steady with light trading as UK and US markets were closed for holidays. The Stoxx 600 Index saw little movement, with auto and energy stocks performing best, while technology shares declined.

EFG International AG surged 4.6% after news of a potential acquisition by Julius Baer, which slipped 0.8%. Despite recent positive economic surprises in Europe and China, concerns over interest rate cuts and the broader macroeconomic picture are growing.

Investors are closely watching European Central Bank comments, anticipating a possible rate cut in June.

JPMorgan asset backs Indian bonds as top Asia investment before index inclusion

JPMorgan Asset Management has increased its holdings of Indian sovereign bonds, viewing them as the best investment in Asia. The firm boosted its holdings in April, capitalizing on yields over 7.15%, while reducing its Chinese bond positions.

High yields, low volatility, and a stable currency make Indian bonds particularly attractive. The inclusion of these bonds in JPMorgan's emerging-market debt index in June is expected to bring significant foreign inflows, estimated at up to $40 billion.

Other global investors are also turning to Indian bonds, anticipating strong returns and stability compared to other Asian markets.