LatAm to outperform Asia - HSBC

Latin American equities are undervalued relative to other emerging markets and are set to outperform Asian stocks in the near term, according to HSBC Global Asset Management.

While the economic fundamentals of both regions remains resilient, HSBC GAM global investment strategist Simona Paravani says based on 12 month trailing P/E ratios, LatAm equities are trading at more than a 40% discount to emerging Asian equities. "LatAm equities therefore appear somewhat undervalued relative to emerging Asia and may have the potential to outperform, especially if economic readings continue to surprise on the upside, thanks to a rebound in domestic demand in Brazil," she says. HSBC's multi-asset World Selection Portfolio funds first took a bias towards Latin America i...