In such a context, investors could tackle stocks ‘affected by Covid’ such as airlines and other companies in the travel and leisure sector, said Ken Peng, head of investment strategy in Asia form the bank.
Peng told CNBC’s “Capital Connection” on Tuesday that Asia is not experiencing a resurgence at Covid for the first time.
“It’s a movie we’ve seen before,” he said.
Indranil Mukherjee | AFP | Getty Images
Asian economies from Nepal to Malaysia and Taiwan have reported a record daily increase in Covid infections in recent weeks, according to data compiled by Johns Hopkins University.
In India, which is experiencing the second most severe epidemic in the world, daily cases have remained high, although the trend is down from record levels in early May, the data showed.
Chinese technology, raw materials
The strategist also said he was “very positive” on the commodities space, with demand from China, the United States and Europe likely remaining resilient.
“Those countries that are closer to collective immunity are likely to continue to see demand for raw materials increasing. So I think as the global recovery continues, we shouldn’t worry too much about commodities at the moment, ”Peng said.