Founder and chairman of Research Affiliates Rob Arnott says now is a good time to shift money into value stocks and into emerging markets outside of the U.S.
SYDNEY - Asian shares started Monday on the backfoot as investors grapple with sky-high valuations against the backdrop of a global economy in the grip of a deep coronavirus-induced recession while oil prices dropped sharply.
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Japan’s Nikkei was down 0.4% ahead of a heavy week of macroeconomic data with figures on household spending, current account and gross domestic product due on Tuesday.
Some analysts expect a fresh dose of fiscal stimulus in the country before the year-end while predicting ‘Abenomics’ will be retained even after Japanese Prime Minister Shinzo Abe steps down from the helm.
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Australian shares slipped 0.4% while South Korea and New Zealand’s benchmark index were off 0.1% each.
That left MSCI’s broadest index of Asia-Pacific shares outside Japan barely changed after two straight days of losses toppled it from a 2-1/2-year peak last week.
World shares hit a record high last week as central bank stimulus drove asset valuations to heady levels. The rally cooled late last week as tech stocks sold off while worries over patchy economic recovery dogged investors.