Dovish central banks across the world to help Asian equities, says HSBC

Global brokerage HSBC believes accommodative monetary policies by central banks across the world will be the next driver for Asian equities. 

"HSBC expects a 25-basis point interest rate cut in September and another 25 bps in December (from two 25-bp cuts in 2020 previously). This may create space for more accommodative monetary policies across Asia," said Herald van der Linde, head of equity strategy (Asia Pacific) at HSBC. 

HSBC has announced key changes to its country allocations in Asia. India continues to be its biggest ‘overweight’ (OW), along with Indonesia, the Philippines, and Thailand. 

HSBC has upgraded Indonesia and Thailand from 'neutral' to