$UBS Puts a But on Asian Growth Equities

“Strategists at three of the world’s biggest banks are advising investors to buy Asian equitiesmost tied to economic growth after valuations fell and the global economy showed signs of recovery.

Technology, industrial and materials stocks will climb next year as China’s expansion accelerates and concern about the U.S. fiscal cliff fades, Niall MacLeod, a strategist at UBS AG, wrote in a report today. Valuations for cyclical shares are about 40 percent lower than defensive equities, including household- products makers, according to a Nov. 26 note by Morgan Stanley’s Jonathan Garner. An improving earnings outlook will help lure investors, Citigroup Inc.’s Markus Rosgen wrote on Nov. 26.”

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