|
According to Refinitiv data, Asian companies' forward 12-month
earnings estimates were lifted by 1.9% in July, which was the
13th consecutive profit upgrade by analysts.
(GRAPHIC: MSCI Asia-Pacific index's estimates change -
https://fingfx.thomsonreuters.com/
gfx/mkt/akvezgjbbpr/MSCI%20Asia-Pacific%20index's%20estimates%20change.jpg)
Goldman Sachs, which expects 35% EPS growth for MSCI Asia
Pacific ex-Japan this year, said continued robust sales growth
and margin recovery will be the drivers of stronger earnings.
"We expect 8% regional index upside in the second half of the
year, but the path may be bumpy given the large number of macro
concerns," it said.
After a rally in the first half of this year, Asian shares
faltered in July, hit by rising cases of the more infectious
Delta variant of COVID-19 in the region.
Australian companies led the region's upgrades in July as
analysts raised their forward 12-month profit estimates 11.5%.
Analysts also raised their earnings estimates for Japanese,
Taiwanese and South Korean firms by 2.4%, 2.3% and 0.8%
respectively.
(GRAPHIC: Breakdown by country for estimates changes in last 30
days -
https://fingfx.thomsonreuters.com/
gfx/mkt/byvrjobgzve/Breakdown%20by%20country%20for%20estimates%20changes%20in%20last%2030%20days.jpg)
"Japanese corporates have piggy-backed on the back of rising
global trade. There are still potential upside surprises from
inventory restocking, an upswing in global capex and a very
sharp turn-around in European growth," brokerage Jefferies said
in a report.
South Korean exports jumped to a record high in July, boosted by
overseas demand for chips and biohealth products.
According to a Reuters poll, Taiwan's exports have likely risen
for a 13th month as the global economy traces its path back to
recovery with sustained work-from-home trends.
The earnings upgrades also came on the back of solid
second-quarter results posted by Asian companies so far.
Refinitiv data showed 64% of companies that have announced
second-quarter results have beaten the forecasts of analysts.
Meanwhile, China, Thailand, Philippine and Malaysian firms faced
earnings downgrades in the last month.
(GRAPHIC: Breakdown by sector for estimates changes in last 30
days -
https://fingfx.thomsonreuters.com/
gfx/mkt/zgvomwyqdvd/Breakdown%20by%20sector%20for%20estimates%20changes%20in%20last%2030%20days.jpg)
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in
Bengaluru; Editing by Bernadette Baum)
[© 2021 Thomson Reuters. All rights
reserved.] Copyright 2021 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
