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What Asia’s Stock Investors Are Betting On in 2021

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Bloomberg) -- After narrowly beating their U.S. peers for the first time in three years in 2020, Asian stocks could see another strong year, analysts say. "Asian equities will be the asset class of choice in 2021, said Gary Dugan, chief executive officer at the Global CIO Office in Singapore. Growth fundamentals and the ability to rebound quickly as Covid issues clear make the region particularly attractive. Here is one of the 5 themes that Asian stock investors say are key to their strategy in 2021: Green is Good Investing on environmental, social and governance grounds should reap benefits, thanks to a slew of favorable government policies. Take renewable energy for instance. China, Japan and Korea are all pushing to become carbon neutral this century, while the U.S. is preparing for a climate-friendly president to take over. Renewable energy has never been cheaper, said David Smith, a portfolio manager at Aberdeen Standard Investments Asia. Chinas recent pledge to be a net zero emitter of greenhouse gases by 2060 has added impetus to the case. Solar- and wind-energy-linked stocks could get a boost as China upgrades its climate goals. Meanwhile, India plans to have 40% of its power generation coming from non-fossil sources by the end of the decade, which should help companies in that space. Electric vehicles are still hot. BNP Paribas Energy Transition fund is among those betting on stocks in the electric-vehicle supply chain, which includes Korean battery makers such as LG Chem Ltd. and firms involved with hydrogen fuel cell technology. Japans auto stocks are in focus as the country prepares to phase out new gasoline cars by mid-2030s.