Core Viewpoint - Morgan Stanley strategists remain bullish on the S&P 500 index, projecting it could rise to 7,200 points by mid-next year, supported by corporate earnings recovery and easing policy uncertainty [1] Earnings Outlook - The range of earnings revisions has expanded to an unprecedented level, with positive operating leverage significantly boosting their non-PMI earnings model [1] - After a prolonged period of negative or stagnant growth, the median growth rate of stock EPS has turned positive [1] Market Risks - There is a contradiction between the lagging weak labor market data and the Federal Reserve's policy response, which may not meet market expectations for speed, posing short-term risks [1]

Group 1 - The A-share market saw a general rise on August 25, with trading volume reaching 3.18 trillion yuan, marking the second-highest in history and exceeding 2 trillion yuan for nine consecutive trading days [1] - On August 26, the A-share market opened lower but showed mixed performance, with the MSCI China A50 Connect Index experiencing a slight decline of approximately 0.5%, while leading stocks like Muyuan Foods and Wanhua Chemical led the gains [1] - Dongwu Securities believes that the recovery of corporate earnings and the narrative of a weak dollar will enter a critical verification window in September, maintaining an optimistic outlook for the market and a slow bull trend for A-shares [1] Group 2 - The A50 ETF (159601) closely tracks the MSCI China A50 Connect Index, providing a packaged investment in 50 leading interconnected stocks, making it a preferred choice for domestic and foreign funds [2] - The MSCI China A50 Connect Index emphasizes liquidity and industry balance during its compilation, showcasing significant large-cap characteristics compared to other "beautiful 50" indices [2]

Group 1 - The extension of the US-China tariff truce by 90 days has led to a bullish trend in Asian stock markets, including India, where corporate earnings are showing signs of recovery and retail investors are continuously injecting funds through mutual funds [1] - The domestic consumption market in India is showing optimistic performance, supported by low inflation, abundant monsoon rainfall, and a personal tax relief policy worth 1 trillion rupees, which collectively boost the consumer goods sector [1] - Motilal Oswal Financial Services predicts a 10% increase in earnings per share for Nifty 50 index constituents this fiscal year, significantly higher than the previous fiscal year's growth of only 1% [1] Group 2 - The domestic market has become a stabilizing factor for Indian pharmaceutical companies, with local sales showing resilience amid uncertainties in the US market due to tariffs [1] - In July, the sales of domestic pharmaceuticals in India grew by 7.9% year-on-year, marking the second-highest growth rate in six months [1] - Companies like Glenmark, Sun Pharma, Alkem, Torrent Pharma, and Dr. Reddy's have outperformed the market average, while Cipla and Lupin lag behind [2] Group 3 - The National Commodity and Derivatives Exchange (NCDEX) has received preliminary approval from market regulators to conduct stock derivatives trading, positioning itself as a competitor to major players like NSE and BSE [3] - Despite a market decline in July due to tariff concerns and weak corporate earnings, Indian retail investors injected a record 427 billion rupees (approximately 4.9 billion USD) into equity funds [3] - The contrasting trend of domestic investors becoming market stabilizers while foreign funds experienced a net outflow of about 3 billion USD highlights the growing importance of local investors in providing support during market downturns [3]

Core Viewpoint - The KOSPI index in South Korea has returned to the 3000-point mark for the first time since early 2022, driven by expectations of increased government fiscal stimulus and strong performance from blue-chip stocks [1][3]. Group 1: Market Performance - As of June 20, the KOSPI index rose by 33.16 points, or 1.11%, reaching 3,010.90 points, with a weekly increase of 4.02% and a year-to-date gain of 25.2% [1]. - Over the past 30 trading days, the KOSPI index has rebounded by more than 16%, outperforming major Asian markets including Japan and India [1]. Group 2: Investor Sentiment - The liquidity in the South Korean market remains positive, with the Korean won stabilizing, which has enhanced foreign investors' risk appetite [2]. - On the day of reporting, foreign investors net purchased KOSPI stocks worth 811 billion KRW, indicating a renewed interest in Korean assets [2]. Group 3: Fiscal Stimulus - The South Korean government has approved an additional budget plan totaling 14.9 trillion KRW (approximately 786 billion RMB), aimed at supporting the economy amid weakening growth [3]. - The budget includes various counter-cyclical measures such as cash subsidies for residents and financial restructuring support for struggling SMEs and builders [3]. Group 4: Economic Outlook - The South Korean economy is facing challenges, with actual GDP growth hovering around zero for four consecutive quarters, and construction investment remaining sluggish [3]. - The government plans to finance the budget through the issuance of 19.8 trillion KRW in new debt, while maintaining that the fiscal fundamentals remain sound [3]. Group 5: Market Projections - Analysts believe that there is still room for further fiscal expansion and monetary easing, which could support the KOSPI in the future [4]. - The current valuation of Korean stocks is considered low, with about 70% of KOSPI constituents having a price-to-book ratio below 1, indicating significant revaluation potential [5].