INVESTORS looking to finish the year off strong should turn their attention to Asia equity markets in December, if history is any guide, Bloomberg News reported.

The MSCI Asia Pacific Index, which has just posted its best monthly return since 2009 with a 10.2 percent rally in November, may remain robust in December, based on its track record over the past decade. Since 2010, the benchmark gauge has averaged a 1 percent gain in the final month of the year, double the performance of the S&P 500 in December, according to data compiled by Bloomberg.

News on development of vaccines to prevent the spread of COVID-19 has fueled optimism for a global economic recovery and sparked a significant value rotation in Asia back into cyclical stocks over the past month.

China — showing some of the healthiest signs of economic growth in the region — is positioned for the strongest equity performance this month, according to a Bloomberg analysis based on recent history.

When it comes to Asia stocks, one shouldn’t ignore the growth and “technological megatrends” even as global investors have started to focus on value stocks after a stream of positive vaccine news, said Manishi Raychaudhuri, head of Asia Pacific equity research with BNP Paribas SA.

Raychaudhuri recommends investors maintain a balanced approach, with his Asia model portfolio consisting of a slight majority mix of technology, media and telecom stocks alongside consumer discretionary, as well as value exposure to financials, property, energy, materials and industrials.

(SD-Agencies)