In this article, we discuss 12 best Asian stocks to buy today. If you want to read about some more Asian stocks, go directly to 5 Best Asian Stocks To Buy Today.
Higher energy and food prices are impacting the economies of developing Asian countries more than the rest of the world. According to a report by the Asian Development Bank, this is one of the key reasons why inflation numbers in Asia are increasing, even as they flatten or register minor drops across the world. The bank has raised the regional inflation forecast to 4.5% for this year and 4.0% for next year. Growth forecasts made in April, meanwhile, have been revised as well, down to 4.3% for this year and to 4.9% for next year.
The bank claims that some of the reasons behind the bearish outlook include a slowdown in global growth, stronger-than-expected monetary policy tightening in advanced economies, the Russian invasion of Ukraine, a deeper-than-expected deceleration in China, and negative pandemic developments. However, the slowdown has also created buying opportunities in the Asian economy that offer explosive growth potential. Many of these firms are in China. Some of the best Asian stocks to buy now in this context include Alibaba Group Holding Limited (NYSE:BABA), JD.com, Inc. (NASDAQ:JD), and Baidu, Inc. (NASDAQ:BIDU).
Our Methodology
The companies that have deep links with the Asian economy were selected for the list. The analyst ratings of these firms and the latest updates related to them are also discussed to provide some additional context. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
Photo by Ruben Sukatendel on Unsplash
Best Asian Stocks To Buy Today
12. SoftBank Group Corp. (OTC:SFTBY)
Number of Hedge Fund Holders: N/A
SoftBank Group Corp. (OTC:SFTBY) provides telecommunication services in Japan and internationally. On September 22, Masayoshi Son, the CEO of the firm, said that he would be traveling to South Korea next month to discuss a strategic tie-up between the chip design unit of his firm, Arm, and electronics giant Samsung. Reports suggest that the company is planning to list Arm in an initial public offering in the US, but intends to keep a majority stake in the chip design firm it bought for $32 billion in 2016.
In addition to Alibaba Group Holding Limited (NYSE:BABA), JD.com, Inc. (NASDAQ:JD), and Baidu, Inc. (NASDAQ:BIDU), SoftBank Group Corp. (OTC:SFTBY) is one of the best Asian stocks to buy now.
11. Tata Motors Limited (NYSE:TTM)
Number of Hedge Fund Holders: 8
Tata Motors Limited (NYSE:TTM) designs, develops, manufactures, and sells various automotive vehicles. On September 1, the company reported that sales for the month of August had grown 36% compared to last year. The Indian automobile maker sold 78,843 vehicles in the domestic and international market during the month, compared to 57,995 units sold in August 2021. Total domestic sales grew 41% year-on-year to 76,479 units, with commercial vehicle sales up 6% to 31,492 units and passenger vehicles sales up 68% to 47,166 units.
At the end of the second quarter of 2022, 8 hedge funds in the database of Insider Monkey held stakes worth $45 million in Tata Motors Limited (NYSE:TTM), compared to 10 the preceding quarter worth $88 million.
10. Toyota Motor Corporation (NYSE:TM)
Number of Hedge Fund Holders: 12
Toyota Motor Corporation (NYSE:TM) designs, manufactures, assembles, and sells passenger vehicles, parts, and accessories for vehicles. On September 22, the firm announced that it was planning to produce nearly 800,000 vehicles in the month of October. The figure is 100,000 short of the average monthly production of the automaker. The decline in production is largely being attributed to a semiconductor shortage that is hitting car makers across the world.
On July 13, UBS analyst Kohei Takahashi maintained a Buy rating on Toyota Motor Corporation (NYSE:TM) stock and lowered the price target to 2,300 yen from 2,500 yen, backing the firm for stable earnings in the coming years.
At the end of the second quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $849 million in Toyota Motor Corporation (NYSE:TM), compared to 9 in the previous quarter worth $952.9 million.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Toyota Motor Corporation (NYSE:TM) was one of them. Here is what the fund said:
“Toyota’s (NYSE:TM) “kaizen” manufacturing philosophy is based on improving manufacturing by using “just in time” processes to eliminate waste and reduce inventory carrying costs. Clearly the company does not contemplate disruptive change that will dramatically lower costs and improve quality.”
9. Infosys Limited (NYSE:INFY)
Number of Hedge Fund Holders: 24
Infosys Limited (NYSE:INFY) provides consulting, technology, outsourcing, and next-generation digital services. On September 20, the company revealed that it had entered into a deal with Telenor Norway under which the former will assist the latter with modernization of telecom infrastructure. Infosys Limited (NYSE:INFY) said it would collaborate with the communications giant in digital, analytics, artificial intelligence, and operational applications. The partnership will also focus on upskilling and competency development.
On July 25, Wedbush analyst Moshe Katri maintained an Outperform rating on Infosys Limited (NYSE:INFY) stock and lowered the price target to $25 from $30, noting the firm provided plenty of ammunition for bulls and bears in the Q2 earnings report.
At the end of the second quarter of 2022, 24 hedge funds in the database of Insider Monkey held stakes worth $988 million in Infosys Limited (NYSE:INFY), compared to 48 the preceding quarter worth $2.3 billion.
8. NetEase, Inc. (NASDAQ:NTES)
Number of Hedge Fund Holders: 26
NetEase, Inc. (NASDAQ:NTES) provides online services focusing on diverse content, community, communication, and commerce in China. It is one of the premier Chinese stocks to invest in. On August 31, the company announced that it had purchased Quantic Dream, a gaming studio based in France that is led by David Cage and Guillaume de Fondaumière. The Chinese firm said that Quantic would continue to operate independently, focusing on creating and publishing video games on all platforms.
On August 19, investment advisory Citi maintained a Buy rating on NetEase, Inc. (NASDAQ:NTES) stock and raised the price target to $140 from $132. Analyst Alicia Yap issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Bermuda-based investment firm Orbis Investment Management is a leading shareholder in NetEase, Inc. (NASDAQ:NTES), with 3.67 million shares worth more than $342 million.
Just like Alibaba Group Holding Limited (NYSE:BABA), JD.com, Inc. (NASDAQ:JD), and Baidu, Inc. (NASDAQ:BIDU), NetEase, Inc. (NASDAQ:NTES) is one of the best Chinese stocks to buy now according to hedge funds.
7. HDFC Bank Limited (NYSE:HDB)
Number of Hedge Fund Holders: 34
HDFC Bank Limited (NYSE:HDB) provides banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. The company was founded in 1994 and is based in India. It has a market capitalization of close to $100 billion. Some of the accounts it offers include savings, salary, current, rural, public provident fund, pension, and Demat accounts, as well as safe deposit lockers, offshore accounts and deposits, overdrafts against fixed deposits, and sweep-in facilities.
At the end of the second quarter of 2022, 34 hedge funds in the database of Insider Monkey held stakes worth $2.2 billion in HDFC Bank Limited (NYSE:HDB), compared to 41 the preceding quarter worth $2.1 billion.
In its Q4 2021 investor letter, Motiwala Capital, an asset management firm, highlighted a few stocks and HDFC Bank Limited (NYSE:HDB) was one of them. Here is what the fund said:
“HDFC Bank (NYSE:HDB) is the leading bank in India. HDFC bank continues to compound sales and profits at 15% and 20% respectively and generates a solid 15-20% ROE. We purchased shares in late December as the share price declined and became attractive. HDFC Bank is a fast grower, and we expect it to continue to generate excellent returns for shareholders.”
6. Coupang, Inc. (NYSE:CPNG)
Number of Hedge Fund Holders: 37
Coupang, Inc. (NYSE:CPNG) owns and operates an e-commerce business through its mobile applications and websites primarily in South Korea. The firm posted earnings for the second quarter of 2022 on August 10, reporting a revenue of more than $5 billion, up more than 12% compared to the revenue over the same period last year. The firm said that total gross profit during the quarter was $1.2 billion, an increase of 75% compared to the total gross profit over the same period last year.
On August 15, Morgan Stanley analyst Seyon Park maintained an Overweight rating on Coupang, Inc. (NYSE:CPNG) stock and increased the price target to $25 from $18, noting that high margin ads were driving a faster EBITDA trajectory for the firm.
Among the hedge funds being tracked by Insider Monkey, Dallas-based investment firm Maverick Capital is a leading shareholder in Coupang, Inc. (NYSE:CPNG), with 84.5 million shares worth more than $1 billion.
In addition to Alibaba Group Holding Limited (NYSE:BABA), JD.com, Inc. (NASDAQ:JD), and Baidu, Inc. (NASDAQ:BIDU), Coupang, Inc. (NYSE:CPNG) is one of the best Asian stocks to buy now.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Coupang, Inc. (NYSE:CPNG) was one of them. Here is what the fund said:
“During the quarter, we also added to our position in the leading Korean e-commerce player, Coupang, Inc. (NYSE:CPNG), taking advantage of the stock’s volatility. While the stock sold off, the business remains robust, growing revenues by 32% in the most recent quarter (year-over-year in constant currency) while gaining market share (the industry grew 8%) and reaching profitability in its product commerce segment three quarters ahead of plan.”
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Disclosure. None. 12 Best Asian Stocks To Buy Today is originally published on Insider Monkey.
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