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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Asian stock markets have raced ahead so far in 2021

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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Asian stock markets have enjoyed a soaring start to 2021, having significantly outperformed major Western indices like the FTSE 100 and S&P 500.
The best performing major stock market in the world so far this year has been the Hang Seng in Hong Kong with a 10.8% return year-to-date according to SharePad, followed by the tech-heavy Nasdaq in the US with a 6.4% return and Japan’s Nikkei 225 which has returned 5%.
Saxo Bank market strategist Eleanor Creagh says Asian outperformance has been driven by optimism regarding vaccine rollout and economic recovery, and it has been the region global investors have focused on since the back end of 2020.
She adds that Asia is also ‘benefiting from better virus handling, the engine of China’s reflationary regime with broad scale infrastructure and construction stimulus, and continued dollar weakness, supporting flows into emerging markets.’
While the broad Shanghai Composite index in China is up 3.9%, Chinese large cap stocks are significantly outperforming with the FTSE China 50 Index up 13.8% year to date while the CSI 300 Index, which takes the top 300 stocks in the Shanghai Composite, has gained 6.7%.
In comparison, the FTSE 100 and S&P 500 have both returned around 2.6%, while European stocks have fared worse with France’s CAC 40 and Germany’s DAX both in negative territory.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.
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