'Underweight' on India, China to lead Asian outperformance in 2023: Nomura

The key risks identified by the brokerage are stretched government finances and oil prices going past $120 a barrel

The 2023 calendar year will be the year of Asia’s outperformance, broking firm Nomura has forecasted but the Japanese brokerage has taken a nuanced view on individual countries. The brokerage, however, expects India’s outperformance could taper going ahead and China to play catch up.

“China’s reopening and recovery will benefit beaten-down North Asia over ASEAN and India,” Nomura has said. It has an ‘underweight’ stance on India. The domestic markets currently trade at 22 times their 12-month forward earnings estimates — more than double that of China and South Korea — the two markets Nomura is ‘overweight’ on.

“Relative valuations