Per the latest report by the Asian Development Bank (ADB) on Jul 21, developing economies in Asia and the Pacific would continue to witness strong economic growth in 2018 and 2019. Growth in Asia is at full throttle and likely to remain so despite escalating trade war woes. Such stable growth has been the result of judicious policymaking practiced in Asian countries.
On the other hand, the ADB also published its strategic plan for Asia through 2030 which highlights the bank’s priorities toward meeting the changing needs of Asian countries. Under circumstances where growth would remain intact in the years to come and ADB could take a more proactive stance toward establishing sustainability within the Asian economy, betting on stocks from the region seems prudent.
ADB Vests its Confidence in Asia’s Growth
In its latest report, the ADB projected that Asia’s economy is set to grow 6% in 2018 and 5.9% in 2019. This is largely in line with its previous forecast in April. Further, if Asia’s newly industrialized economies are excluded, the growth forecast stands at 6.5% for 2018 and 6.4% for 2019.
China, the world’s second largest economy, is poised to grow 6.6% and 6.4% in 2018 and 2019, respectively. Further, East Asia would witness 6% growth in 2018 and 5.8% in 2019, on the back of steadily growing economies of Hong Kong, China and Taipei. On the other hand, growth in South Asia would be the fastest in the region.
The region’s growth would be led by India, which is on track to meet its fiscal year 2018 projection of 7.3% growth. This would further accelerate to 7.6% in 2019 buoyed by reformations in taxes as well as the country’s banking sector. Finally, growth in Southeast Asia would remain unchanged at 5.2% in 2018 and 2019.
VIDEO ADB’s Strategy 2030
The latest strategy report published by the Manila-based bank emphasizes improvement in healthcare in the region. Historically, the bank has focused more on infrastructure spending in Asia but precarious healthcare conditions in poor countries like Mongolia and Uzbekistan have forced the bank to change its approach.
The ADB is adopting a more proactive stance in dealing with extreme poverty in the region by aligning its goals with global development agreements and frameworks, the likes of which include Sustainable Development Goals, the Paris Agreement on climate change, and the Sendai Framework for Disaster Risk Reduction.
The body also plans to streamline investments in climate change mitigation projects in accordance with the Paris accord. Over the next 12 years, the bank aims at increasing climate financing to about $7 billion a year.
4 Best Stocks
The most recent report by the ADB indicates that Asia would remain largely unaffected by impacts of the trade war. This is due to the fact that sagacious policymaking in Asian countries has enabled the economy to withstand global shocks. Further, in its next 12-year plan of action, the ADB is adopting a tougher stance to fight extreme poverty and climatic change in the region. This would lead to sustainable growth within Asia.
In this context, we have selected four Asian stocks that are expected to gain from these factors. These four stocks carry a Zacks Rank #1 (Strong Buy) or 2 (Buy). You can see
. the complete list of today’s Zacks #1 Rank stocks here JinkoSolar Holding Co., Ltd. ( JKS - Free Report) is a designer and developer of photovoltaic products in China as well as across the globe.
The company is based out of Shangrao, China and sports a Zacks Rank #1. JinkoSolar has expected earnings growth of more than 100% for the current year. The Zacks Consensus Estimate for the current year has improved 74.5% over the past 60 days.
Hollysys Automation Technologies Ltd. ( HOLI - Free Report) is a provider of automation and control technologies and products.
The Zacks Rank #2 company based out of Beijing, China has expected earnings growth of 22.13% for the current year. The Zacks Consensus Estimate for the current year has improved almost 1% over the past 60 days.
Woori Bank Co., Ltd. ( WF - Free Report) is a provider of commercial banking products and services in South Korea.
The Zacks Rank #1 company based out of Seoul, South Korea has expected earnings growth of 31.11% for the current year. The Zacks Consensus Estimate for the current year has improved 7.3% over the past 60 days.
China Petroleum and Chemical Corp. ( SNP - Free Report) is a joint-stock company focusing on its core business of petroleum and petrochemicals with integrated upstream, mid-stream and downstream operations and a complete marketing network.
The company is based out of Beijing and carries a Zacks Rank #1. China Petroleum has expected earnings growth of 77.92% for the current year. The Zacks Consensus Estimate for the current year has improved 10.5% over the past 60 days.
5 Medical Stocks to Buy Now
Zacks names 5 companies poised to ride a medical breakthrough that is targeting cures for leukemia, AIDS, muscular dystrophy, hemophilia, and other conditions.
New products in this field are already generating substantial revenue and even more wondrous treatments are in the pipeline. Early investors could realize exceptional profits.
Click here to see the 5 stocks >>