Given the strong US dollar and economic slowdown in developed markets, the outlook for emerging markets (EM) remains tricky, said BNY Mellon Investment Management (BNY Mellon IM).
The internet, property and energy sectors are likely to perform in the second half of this year, said the German asset manager.
Investors in regional high yield markets can expect Asia to be relatively resilient to global headwinds, with China to stimulate its economy, according to Fidelity International.
The investment manager believes Indonesia and India credits present better opportunities than China amid volatility.
The path for recovery for the real estate sector remains bumpy despite relaxing policy.
Investors are likely to differentiate further between high and low quality China property bonds following the recent restrictions on offshore issuance.
Last year’s economic headwinds have turned into tailwinds since the start of the year and will support Asian credit, argues Allianz Global Investors’ David Tan.
Mainland property, the services sector and Chinese companies with global reach are the top investment themes for 2017, according to investment director Alan Wang.
The property sector accounts for a significant portion of GDP and the government continues to prop it up, analysts said.