Sou Hu Cai Jing·2025-09-10 08:39Core Viewpoint - HSBC's multi-asset strategist team is increasing equity holdings due to strong economic activity data contrasting with weak U.S. employment data [1] Economic Activity - Recent high-frequency data indicates a rebound in global manufacturing and U.S. consumer activity, supporting both stock earnings and valuations [1] Federal Reserve Policy - A weak labor market is expected to trigger interest rate cuts by the Federal Reserve, which will broaden the scope of stock market gains [1] Credit Market Strategy - The team is reducing its overweight position in high-yield credit bonds, as the market has priced in nearly six rate cuts by the Federal Reserve before December next year [1] - Even slight increases in credit spreads or short-term yields could lead to flat or negative returns [1] Equity Market Positioning - The team has ended its underweight stance on Japanese stocks, finding bank stocks attractive due to reduced growth risks from recent U.S.-Japan trade agreements [1] - The team holds an overweight position in equities, high-yield credit bonds, and emerging market rates, while maintaining an underweight stance in investment-grade credit bonds and developed market sovereign bonds [1]