Recession-Resilient Asian Stock Picks: TSMC, SK Hynix Among This Analyst's Top 10

In a market landscape clouded by recession fears, sell-offs and rebounds, Macquarie has identified 10 Asian stocks it believes are primed for a comeback.

Amidst the turmoil of declining global markets, these stocks have weathered the impact of the recent drawdown and are now positioned as top buying opportunities.

Macquarie’s list of “highest conviction” stocks includes semiconductor giants:

• Taiwan Semiconductor Manufacturing Co Ltd TSM
• SK Hynix Inc HXSCF HXSCL and
• Alchip Technologies Ltd ALCPF.

These companies reflect a bullish stance on the technology sector despite current concerns surrounding Nvidia Corp NVDA, reported CNBC.

Other notable names include:

• Hitachi Ltd HTHIF HTHIY
• NEC Corp NIPNF
• Wiwynn Corp.
• Sugi Holdings Co Ltd
• Daiichi
• Sankyo Co Ltd DSKYF DSNKY, and
• HD Hyundai Electric.

These selections underscore Macquarie’s confidence in Asia’s ability to weather global market challenges.

According to Macquarie equity strategists led by Peter Williamson, “As stock pickers, we focus on a basket of stocks that we believe will emerge from the current drawdown, and which will present a buying opportunity for investors as this bout of volatility subsides.”

Read Also: Nvidia, Microsoft, Apple, Amazon Erase $1.1 Trillion In Monday Sell-Off: Bubble Burst Or Market Correction?

Why These Stocks? They maintain robust fundamental growth drivers, making them compelling choices for long-term investors, the strategists say.

These companies can withstand emerging macro uncertainties, such as a recession or the unwinding of the Japanese yen carry trade.

The week opened with Japan’s stock market taking a nosedive of over 12% on Monday before rebounding slightly. The S&P 500 too, experienced its worst single-day performance in nearly two years, plummeting 3% in one day.

The technology and banking sectors saw significant declines as investors scrambled.

Macquarie’s strategy reflects a calculated gamble on the resilience and potential growth of Asian markets.

While market volatility persists, Macquarie’s conviction in these stocks provides a potential pathway to profits for savvy investors.

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