Bloomberg Daybreak: Asia Edition Stocks Hit Record High as US-China Trade Woes Ease
Oct 28, 2025
George Efstathopoulos, a Multi-Asset Portfolio Manager at Fidelity International, discusses Japan's promising economic shift and why its banks might be poised for growth. He suggests China is becoming more investable due to government stimulus boosting consumption. Ahmed Riesgo, Chief Investment Officer at Insigneo, shares insights on earnings expectations for tech giants and suggests that AI-related valuations differ from past market bubbles. He emphasizes the impracticality of US-China decoupling while noting the need for broader earnings growth to sustain market optimism.
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Japan's New Inflationary Phase
- Japan is experiencing sticky, wage-driven inflation that differs from past import-led spikes.
- That makes banks and domestically focused mid-caps attractive as BoJ lags on policy tightening.
Banks And Mid-Caps As Japan Trade
- Japanese mid-caps are less sensitive to yen moves and benefit from domestic demand and corporate reforms.
- Japanese banks may gain as lending improves while the BoJ remains behind the inflation curve.
Yen Moves Won't Cripple Exporters
- Yen strength may return as global rate differentials shift with the Fed easing and BoJ hiking slowly.
- Large exporters may be less hurt now due to reduced historical sensitivity and potential global demand pickup.