JP Morgan’s investment picks: India, Japan, Europe

J.P. Morgan Asset Management advised local investors Tuesday to turn their eyes to international markets, particularly India, Japan and Europe where potential to grow remains high.

Tai Hui, a managing director of the company, appreciated the Indian government’s economic reforms, forecasting that they will help boost Asia’s third-largest economy.

Hui also mentioned improving business sentiment and low inflation in the country, which will play a pos- itive role in economic growth.

“The Indian government is moving ahead to reform the economy, and as a result of the reforms, domestic business sentiment is improving. It is helpful for the economic cycle,” said Hui in a press conference at a restaurant in Yeouido, Seoul.

In terms of Japan, the J.P. Morgan director said Japanese manufacturers will benefit from the improving global economy, as well as the weak yen, which will support the nation’s exporters.

Hui’s last pick for investors was Europe. He said firms in the conti- nent are expected to post surprise earnings thanks to the low currency value and cheap funding costs, making the market attractive to investors.

However, the asset management affiliate of J.P. Morgan & Chase was wary of the Korean stock market, saying the country is “in the middle of pack” due to low expectations for earnings and weak economic growth.

J.P. Morgan Asset Management is one of the largest asset and wealth managers in the world, with assets under management of $1.7 trillion as of September 2014.