Korea, India, Vietnam stand out as Asia's top growth plays
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Yahoo
6 hours ago
- Yahoo
Alibaba Stock Could Bounce Despite Trade Tensions
Alibaba Group Holding Ltd (NYSE:BABA) shares are 2% lower to trade at $106.55 at last glance, sliding alongside the broader market amid . Despite today being on track for its third-straight loss, the equity still sports a 26.8% lead for 2025, with a familiar floor at the $100 level ready to contain any additional losses. Even better, the stock is now trading a trendline that has historically resulted in bullish returns. According to Schaeffer's Senior Quantitative Analyst Rocky White, BABA is within one standard deviation of its 200-day moving average. Shares were above this this trendline in at least eight of the last 10 trading days, and spent 80% of the past two months above it. Within these parameters, three other signals occurred during the last five years, after which the equity was higher one month later 67% of the time, averaging a 6.9% gain. For those looking to weigh in on the stock's next moves, options look like an affordable route. This is per BABA's Schaeffer's Volatility Index (SVI) of 32%, which sits in the 8th percentile of its annual range. This indicates options traders are pricing in low volatility expectations. It's also worth noting that Alibaba stock has usually outperformed these expectations during the past year, per its of 87 out of 100. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Insider
8 hours ago
- Business Insider
These 3 'pain trades' could catch investors off guard in the 2nd half of the year
Stock investors are operating on some assumptions that could be proven incorrect, HSBC said. The bank said it identified three "pain trades" if the US market bucks Wall Street's expectations. Strategists said they saw the potential for a melt-up in the stock market to continue. There are a handful of consensus views on Wall Street that risk being proven incorrect in the back half of this year, raising the risk for some traders betting on things like the impact of tariffs and the direction of US stocks. That's according to strategists at HSBC Global Research, who see a risk that markets may not react to headwinds like tariffs and the GOP tax bill in the way that most investors may be expecting. In a note to clients on Monday, the bank said it identified several " pain trades" if the market bucked expectations on Wall Street in the second half of the year. "A lot of views going into H2 have become quite consensus and widely-held. Therefore some of our sentiment and positioning indicators are showing increasing signs of stretched views. What if Q3 turns out to be the quarter where these widely-held views unwind though?" the bank wrote. The analysts added that they believed the US stock market could continue to see "broad-based melt-up" — a situation where risk assets keep moving higher — contrary to some of Wall Street's gloomier forecasters. Here are three of the largest pain trades the bank sees potentially impacting investors. 1. US stocks keep outperforming the rest of the world There's a growing view that the US stock market will underperform international stocks this year. Investors are mainly concerned that tariffs could hit corporate earnings and increase uncertainty in the US, which could hit high stock valuations. In a survey conducted by Bank of America in June, 54% of global fund managers said they believed international equities would be the best-performing asset over the next five years, compared to just 23% of investors who said they believed US stocks would be the top asset. But there are a few reasons the US could continue to dominate the world market, HSBC said. For one, corporate earnings may not be as affected by tariffs as investors are predicting. Strategists estimated that around 20% of the cost of goods sold, or goods that American firms need to make profits, are imported from other countries. Meanwhile, large-cap and mega-cap firms are benefiting from a weaker dollar, which could make US products more attractive to consumers abroad, HSBC said. HSBC said weekly announcements of stock buybacks from US companies also hit a record high after the first-quarter earnings season. "Yes the US equity market is expensive. That's because it makes the most money," strategists said. "We can easily envisage a backdrop where things like the big beautiful bill, potential efforts around deregulation coupled with further evidence of profitability benefits from AI leads to an even larger gap in return on equity between the US and RoW equities in the coming quarters." 2. The US economy avoids a recession Most investors also expect economic growth to slow sharply in the US and the broader global economy in the second half. But there are several indicators of economic expectations that have shown soft signs of a rebound in recent weeks, HSBC said. The Bloomberg consensus GDP forecast diffusion index, one measure of GDP growth expectations, perked up in June. High-frequency consumer spending datapoints have also shown a slight uptick, a possible sign that consumers are beginning to feel better about what's ahead. "Despite the calls for a slowdown, high-frequency data show that after a temporary slump in May, US activity has in fact recovered again in June," strategists said, adding there could be upside risk if political and economic uncertainty begins to decline and the unemployment rate remains low in the US. 3. The US dollar makes a comeback Most forecasters also don't expect the US dollar to recover in value anytime soon, given the uncertainty surrounding geopolitics and trade. The US Dollar Index, which weighs the value of the greenback against a basket of other major currencies, has declined 10% year-to-date. HSBC's base-case is that the dollar will remain "soft" in the second half of the year, but there are two ways the US dollar could stage a recovery, something that would be "surprising yet painful" to investors, strategists said. There's a large global shock that drives currency traders back to the US dollar. The US dollar saw a brief spike as conflict between Israel, Iran, and the US unfolded last month. US policy uncertainty and structural forces stop weighing on the dollar. That could indicate to markets that the narrative of US exceptionalism is returning, causing the dollar to trade more in-line with what interest rates would imply. In that scenario, the Dollar Index could strengthen to 102, HSBC estimated, implying a 5% increase from current levels.
Business Wire
9 hours ago
- Business Wire
Affluent Investors Double Allocations to Alternative Investments, HSBC Investor Snapshot Finds
NEW YORK--(BUSINESS WIRE)--HSBC's new Affluent Investor Snapshot 2025 reveals that affluent investors doubled their allocations to alternative investments over the past year. The trend looks set to continue, holding strong appeal into the future as investors seek to further diversify their portfolios. Around half of the global affluent investors in the survey of 10,797 individuals in 12 markets say they plan to own alternative investments within the next 12 months, doubling the current ownership level. Multi-asset solutions, private market funds, mutual funds and hedge funds are the most popular investment products as investors seek broader diversification. Private market funds are particularly popular, with 29% of investors planning to add them to their portfolios, while 20% intend to invest in hedge funds. Affluent investors globally have cut cash levels by nearly 40% over the past year, with younger generations driving the most significant reductions; Gen Z and millennials have cut their cash holdings from 31% to 17%. Younger generations are also leading the adoption of alternative investments, tripling their allocation to alternative investments within the past 12 months. 'As technology evolves and information becomes more readily available, investors report that social media platforms and banks remain their top information channels,' said HSBC U.S. Head of Wealth and Global Private Banking Racquel Oden. 'As individuals rank wealth advisors and family members as their top choices for investment advice, we remain focused on providing our best-in-class wealth management expertise to our clients.' Gold Shines as Safe Haven Alongside alternatives, gold has emerged as the standout asset class of the year, with allocations more than doubling from 5% to 11% of portfolios. This marks the largest portfolio allocation increase across other asset classes compared to last year. Similar to alternatives, the number of portfolios that include gold looks set to double over the next year, as one in every two affluent investors plan to invest in the asset. While physical gold remains a key safe haven amid macroeconomic uncertainty, with over 40% planning to own the asset within the next 12 months, digital gold has also been gaining traction, with 28% of investors expressing interest. Priorities Shift to Focus on Personal Wellbeing The survey also revealed a global shift in mindset, with investors prioritising vacation and leisure as the number one financial goal worldwide. Despite this shift, gaining wealth for financial security remains a priority across generations. Gen Z continue to focus on diversification when considering income, as well as their investment portfolio; their second biggest priority is creating additional, or multiple, revenue streams. About HSBC HSBC Holdings plc, the parent company of HSBC, is headquartered in London. HSBC serves customers worldwide from offices in 58 countries and territories. With assets of US$3,054bn at 31 March 2025, HSBC is one of the world's largest banking and financial services organizations. HSBC Bank USA, National Association (HSBC Bank USA, N.A.) serves customers through International Wealth and Premier Banking (IWPB) and Corporate and Institutional Banking (CIB). Deposit products are offered by HSBC Bank USA, N.A., Member FDIC. It operates Wealth Centers in: California; Washington, D.C.; Florida; New Jersey; New York; Virginia; and Washington. HSBC Bank USA, N.A. is the principal subsidiary of HSBC USA Inc., a wholly owned subsidiary of HSBC North America Holdings Inc. HSBC Innovation Banking in the U.S. is a business division with services provided in the United States by HSBC Bank USA, N.A.
