13 Best Asian Stocks To Buy Today
In this article, we discuss 13 best Asian stocks to buy today. If you want to see more stocks in this selection, check out 5 Best Asian Stocks To Buy Today.
On March 14, Asian Pacific markets saw a volatile session, declining significantly following the sharp losses on Wall Street as investors grappled with the failed banks in the US, particularly Silicon Valley Bank. However, most of the Asia-Pacific markets experienced gains on March 15, following a rebound in bank stocks on Wall Street, as investors' optimism grew regarding the containment of contagion risks from Silicon Valley Bank. Furthermore, the annualized 6% increase in the U.S. inflation print for February was consistent with market expectations.
Moreover, some venture capital firms told CNBC that the failed US-based Silicon Valley Bank is unlikely to affect Southeast Asian startups raising funds. They noted that funds in Southeast Asia are well capitalized, and there is a lot of capital to deploy. According to David Gowdey, managing partner at Southeast Asian VC firm Jungle Ventures, there is no immediate impact on the startup funding environment. Additionally, Vinnie Lauria, managing partner at Golden Gate Ventures, said that this is the time for Southeast Asia to shine. For example, Chinese stocks saw a strong increase on March 12, surpassing the broader Asian market, as traders placed bets on policy continuity following news that China's economic leadership team would retain several familiar figures.
Similarly, Indian stocks saw a recovery after a volatile trading session on March 16, narrowly avoiding a technical correction, as investors evaluated the effects of the Credit Suisse Group AG crisis on the local markets. The Indian equities had been under pressure due to concerns over the rising US interest rates and the decline in Adani Group's stocks since December. However, some investors are gaining confidence in the Indian market's large domestic market and banking system, which is somewhat insulated from global shocks, and are taking advantage of the market weakness as they expect corporate earnings to continue growing.
Money managers and retail investors alike are aware of the growth potential in the emerging and developed Asian markets. Some of the best Asian stocks to buy include Alibaba Group Holding Limited (NYSE:BABA), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and JD.com, Inc. (NASDAQ:JD).
Our Methodology
For this article, we selected Asian stocks based on overall hedge fund sentiment. We have assessed the hedge fund sentiment from Insider Monkey’s database of 943 elite hedge funds tracked as of the end of the fourth quarter of 2022. The list is arranged in ascending order of the number of hedge fund holders in each firm.
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Best Asian Stocks To Buy Today
13. Melco Resorts & Entertainment Limited (NASDAQ:MLCO)
Number of Hedge Fund Holders: 27
Melco Resorts & Entertainment Limited (NASDAQ:MLCO) develops, owns, and manages casino gaming and resort facilities in Asia and Europe. The company was incorporated in 2004 and is headquartered in Central, Hong Kong. On March 8, Melco Resorts & Entertainment Limited (NASDAQ:MLCO) made an agreement with its wholly owned subsidiaries, Melco International Development (MIDL) and Melco Leisure and Entertainment, to buy back 40.4 million shares from Melco Leisure at a price of $4.2 per share, amounting to $169.8 million. In January 2023, MIDL already paid back $200 million to the company. Additionally, Melco Resorts & Entertainment Limited (NASDAQ:MLCO)’s previously announced share repurchase program worth $500 million is still active, with approximately $412 million available for future repurchases under the program.
On December 9, Praveen Choudhary, an analyst at Morgan Stanley, believes that Melco Resorts & Entertainment Limited (NASDAQ:MLCO) is the best choice among the Macau stocks due to its favorable valuation and positive prospects in 2023. He assigned the stock an Overweight rating and set a price target of $13.50, referring to it as the firm's "Macau Top Pick."
According to Insider Monkey’s fourth quarter database, 27 hedge funds were bullish on Melco Resorts & Entertainment Limited (NASDAQ:MLCO), compared to 30 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the largest stakeholder of the company.
Like Alibaba Group Holding Limited (NYSE:BABA), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and JD.com, Inc. (NASDAQ:JD), Melco Resorts & Entertainment Limited (NASDAQ:MLCO) is one of the best Asian stocks to consider.
12. Sony Group Corporation (NYSE:SONY)
Number of Hedge Fund Holders: 28
Sony Group Corporation (NYSE:SONY) develops and markets electronic equipment, instruments, and devices for the consumer, professional, and industrial markets in Japan, the United States, Europe, China, the Asia-Pacific, and internationally. Sony Group Corporation (NYSE:SONY) was incorporated in 1946 and is headquartered in Tokyo, Japan. It is one of the best Asian stocks to invest in. On February 2, the company reported a Q3 GAAP EPS of ¥263.89, and the revenue of ¥3.41 trillion climbed 12.5% year-over-year.
On February 3, Cowen analyst Doug Creutz raised the firm's price target on Sony Group Corporation (NYSE:SONY) to $118 from $102 and kept an Outperform rating on the shares. While Sony Group Corporation (NYSE:SONY) slightly reduced its revenue guidance for FY22, the analyst noted that there has been solid execution that has offset macro pressure. Additionally, the company has raised its guidance on operating income. Creutz also expects that the PlayStation will experience an acceleration in 2023.
According to Insider Monkey’s fourth quarter database, 28 hedge funds were bullish on Sony Group Corporation (NYSE:SONY), compared to 27 funds in the prior quarter. Mario Gabelli’s GAMCO Investors is the biggest position holder in the company.
Aristotle Capital made the following comment about Sony Group Corporation (NYSE:SONY) in its Q3 2022 investor letter:
“Sony Group Corporation (NYSE:SONY), the global provider of video games and consoles, image sensors, and music, as well as movies, was a major detractor for the period. The share price of the company has struggled this year following its strong performance in 2021. Signs of a slowdown in the gaming industry (as people seem inclined to take on outdoor activities as pandemic fears have subsided), combined with sales of its PlayStation 5 that have been held up by a global parts shortage, have led to gaming‐related software sales falling more than 20% year‐over‐year. Rather than focusing on short‐term demand dislocations, we focus on the company’s ability to continue migrating videogame users toward the firm’s subscription offerings, as well as its capacity to leverage content across its video, music and gaming platforms. We are also impressed with the expansion of Sony’s Music segment, which has been supported by the pervasiveness of streaming services. Management’s ongoing work to improve the company’s TV and film studios is bearing fruit as well, with sales growing 67% year‐over‐year for its Pictures segment as its regional strategy has taken hold, including recent progress made toward solidifying a merger plan with India‐based Zee Entertainment. All of this is to say we remain excited by the oligopolistic nature of the businesses Sony operates in, and the future prospects for the company given its leadership in image sensors, music publishing and gaming consoles.”
11. HDFC Bank Limited (NYSE:HDB)
Number of Hedge Fund Holders: 31
HDFC Bank Limited (NYSE:HDB) offers banking and financial services in India, Bahrain, Hong Kong, and Dubai. It operates via Treasury, Retail Banking, Wholesale Banking, Other Banking Business, and Unallocated segments. The company was incorporated in 1994 and is based in Mumbai, India. On November 17, 2022, Flywire Corporation (NASDAQ:FLYW) announced that it has partnered with HDFC Bank Limited (NYSE:HDB) to allow Indian customers to digitally pay international education fees to higher education institutions all over the world.
According to Insider Monkey’s fourth quarter database, 31 hedge funds were bullish on HDFC Bank Limited (NYSE:HDB), compared to 36 funds in the prior quarter. Rajiv Jain’s GQG Partners is the biggest stakeholder of the company, with 21 million shares worth $1.4 billion.
Here is what Motiwala Capital has to say about HDFC Bank Limited (NYSE:HDB) in its Q4 2021 investor letter:
“HDFC Bank (NYSE:HDB) is the leading bank in India. HDFC bank continues to compound sales and profits at 15% and 20% respectively and generates a solid 15-20% ROE. We purchased shares in late December as the share price declined and became attractive. HDFC Bank is a fast grower, and we expect it to continue to generate excellent returns for shareholders.”
10. NetEase, Inc. (NASDAQ:NTES)
Number of Hedge Fund Holders: 31
NetEase, Inc. (NASDAQ:NTES) specializes in online services focused on community, communication, and commerce in China and internationally. The company operates in three segments – Online Game Services, Youdao, Cloud Music, and Innovative Businesses and Others. NetEase, Inc. (NASDAQ:NTES) is one of the best Asian stocks to monitor. In the fourth quarter of 2022, the company reported a revenue of $3.7 billion, up 4.0% year-over-year and in-line with market estimates. The gross profit was $1.9 billion, an increase of 2.5% compared with the fourth quarter of 2021.
On February 28, JPMorgan analyst Daniel Chen upgraded NetEase, Inc. (NASDAQ:NTES) to Overweight from Neutral with a price target of $100, up from $85. Despite the share price falling by 8% after the Q4 report, Chen noted that the company is set to enter a new game launch cycle in March, which presents an opportunity for investors to buy in. Furthermore, JPMorgan has become more optimistic about the sustainability of Eggy Party after its strong performance following the Chinese New Year.
According to Insider Monkey’s fourth quarter database, 31 hedge funds were long NetEase, Inc. (NASDAQ:NTES), compared to 24 funds in the prior quarter. William B. Gray’s Orbis Investment Management is the largest stakeholder of the company, with 4.60 million shares worth $334.3 million.
9. Trip.com Group Limited (NASDAQ:TCOM)
Number of Hedge Fund Holders: 36
Trip.com Group Limited (NASDAQ:TCOM) provides travel-related services such as booking accommodations, transportation tickets, packaged tours, and in-destination activities, as well as corporate travel management and other related services in China and around the world.
On March 6, Trip.com Group Limited (NASDAQ:TCOM) reported a Q4 non-GAAP EPADS of $0.11 and a revenue of $730 million, outperforming Wall Street estimates by $0.13 and $32 million, respectively. Outbound air-ticket bookings and hotel bookings climbed by over 200% and 140% year over year in the fourth quarter, respectively. The company's operations within China remained strong and durable, while its international business has shown a strong and steady recovery trend. Trip.com Group Limited (NASDAQ:TCOM) is one of the best Asian stocks to invest in.
TD Cowen analyst Kevin Kopelman on March 8 raised the firm's price target on Trip.com Group Limited (NASDAQ:TCOM) to $44 from $40 and kept an Outperform rating on the shares. Despite limited outbound capacity, the analyst noted that Trip.com Group Limited (NASDAQ:TCOM)’s Q1 revenue is already approaching full recovery, with a strong rebound in domestic travel after COVID-19.
According to Insider Monkey’s Q4 data, 36 hedge funds were bullish on Trip.com Group Limited (NASDAQ:TCOM), compared to 42 funds in the prior quarter. Richard S. Pzena’s Pzena Investment Management is the biggest stakeholder of the company, with 9.6 million shares worth $333 million.
Artisan International Value Fund made the following comment about Trip.com Group Limited (NASDAQ:TCOM) in its Q4 2022 investor letter:
“Trip.com Group Limited (NASDAQ:TCOM), a Chinese online travel agency, was the second-largest contributor to return in 2022. Trip.com is the dominant supplier of online travel reservations and is expected to benefit from China’s loosening COVID-19 restrictions on both domestic and international travel. Management of Trip.com has wisely spent the COVID-19 lockdown period reinforcing and improving the company’s market position and reducing unnecessary costs. We expect earnings to boom over the next year as travel picks up. Other investors appeared to agree, pushing the share price up 42% in 2022.”
8. New Oriental Education & Technology Group Inc. (NYSE:EDU)
Number of Hedge Fund Holders: 36
New Oriental Education & Technology Group Inc. (NYSE:EDU) is a provider of private educational services in China under the New Oriental brand. The company is organized into four segments – Educational Services and Test Preparation Courses, Online Education and Other Services, Overseas Study Consulting Services, and Others. It was established in 1993 and is based in Beijing, China. New Oriental Education & Technology Group Inc. (NYSE:EDU) is one of the best Asian stocks to monitor. On January 17, the company reported a Q2 non-GAAP EPADS of $0.10 and a revenue of $638.2 million, topping market estimates by $0.01 and $24.04 million, respectively.
On November 28, Citi analyst Mark Li reiterated a Buy rating on New Oriental Education & Technology Group Inc. (NYSE:EDU) with a $39 price target. The analyst has identified New Oriental Education & Technology Group Inc. (NYSE:EDU) as his top pick in the education sector, noting its recovery in high school after-school tutoring and adult education, its growth in non-academic tutoring and Koolearn's e-commerce, and its substantial net cash position of $3 billion.
According to Insider Monkey’s fourth quarter database, 36 hedge funds were long New Oriental Education & Technology Group Inc. (NYSE:EDU), compared to 29 funds in the prior quarter. Fang Zheng’s Keywise Capital Management is the biggest stakeholder of the company, with approximately 4 million shares worth $138.3 million.
Here is what Polen International Growth has to say about New Oriental Education & Technology Group Inc. (NYSE:EDU) in its Q3 2021 investor letter:
“The quarter’s leading detractors were Chinese companies that were impacted by the CCP’s regulatory crackdown and liquidity concerns at property developer Evergrande. New Oriental Education—the largest provider of private educational services in China—moved sharply lower in July after policymakers implemented new rules which effectively turned Chinese tutoring companies into non-profits. Looking at New Oriental Education, we closed our position as soon as government policy became clear and used the proceeds to allocate to existing holdings.”
7. KE Holdings Inc. (NYSE:BEKE)
Number of Hedge Fund Holders: 39
KE Holdings Inc. (NYSE:BEKE) operates an integrated platform, both online and offline, for housing transactions and services in China. Its business is divided into three segments – Existing Home Transaction Services, New Home Transaction Services, and Emerging and Other Services. KE Holdings Inc. (NYSE:BEKE) offers a range of services for housing transactions such as existing and new home sales, home rentals, home renovation and furnishing, and other related services. It was established in 2001 and has its headquarters in Beijing, China. KE Holdings Inc. (NYSE:BEKE) is one of the best Asian stocks to invest in.
On March 16, KE Holdings Inc. (NYSE:BEKE) reported a Q4 non-GAAP EPADS of $0.18 and a revenue of $2.4 billion, topping Wall Street estimates by $0.10 and $40 million, respectively. For the first quarter of 2023, KE Holdings Inc. (NYSE:BEKE) expects total net revenues to be between RMB18.0 billion and RMB18.5 billion, representing an increase of approximately 43.4% to 47.4% from the same quarter of 2022.
JPMorgan analyst Alex Yao upgraded KE Holdings Inc. (NYSE:BEKE) to Overweight from Neutral with a price target of $21, up from $17. According to the analyst, there is potential for the company to earn more in the near future and its "established profitability" could result in higher earnings estimates for 2023.
According to Insider Monkey’s fourth quarter database, 39 hedge funds were long KE Holdings Inc. (NYSE:BEKE), compared to 41 funds in the prior quarter. Lei Zhang’s Hillhouse Capital Management is the biggest stakeholder of the company, with 21 million shares worth $293.80 million.
Here is what Tao Value has to say about KE Holdings Inc. (NYSE:BEKE) in its Q3 2021 investor letter:
“As witnessed in the past quarter, the government intervention in the Chinese private sector is elevated to an unprecedented level. Given this background, I thoroughly reviewed all our Chinese holdings and made a few changes. We exited KE holdings (ticker: BEKE), for high potential regulatory risk and the passing of the visionary founder & CEO Zuo Hui (who was a core tenet of our original thesis).”
6. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 40
Baidu, Inc. (NASDAQ:BIDU) was incorporated in 2000 and is headquartered in Beijing, China. It offers internet search services in China. On February 22, Baidu, Inc. (NASDAQ:BIDU) reported a Q4 non-GAAP EPADS of $2.21 and a revenue of $4.8 billion, outperforming Wall Street estimates by $0.16 and $170 million, respectively. As of December 31, 2022, cash, cash equivalents, restricted cash and short-term investments came in at $26.87 billion.
On February 23, Benchmark analyst Fawne Jiang raised the firm's price target on Baidu, Inc. (NASDAQ:BIDU) to $210 from $200 and kept a Buy rating, following the company's better-than-expected Q4 results. Baidu, Inc. (NASDAQ:BIDU) has reported an improving advertising outlook for Q1, as mobility returns to normal in China. Benchmark sees Baidu, Inc. (NASDAQ:BIDU) as a significant beneficiary of reopening in terms of advertising. The firm believes that it is too early to quantify the financial impact of Baidu's planned launch of its chatbot, ERNIE, in March. However, Benchmark considers the potential technology breakthrough to be an attractive optionality for Baidu to leverage its AI technology capabilities.
According to Insider Monkey’s fourth quarter database, 40 hedge funds were bullish on Baidu, Inc. (NASDAQ:BIDU), compared to 43 funds in the prior quarter. John W. Rogers’ Ariel Investments is the largest stakeholder of the company, with 2.85 million shares worth $326.3 million.
In addition to Alibaba Group Holding Limited (NYSE:BABA), Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), and JD.com, Inc. (NASDAQ:JD), Baidu, Inc. (NASDAQ:BIDU) is one of the best Asian stocks to invest in.
Baron Emerging Markets Fund made the following comment about Baidu, Inc. (NASDAQ:BIDU) in its Q4 2022 investor letter:
“Shares of Baidu, Inc. (NASDAQ:BIDU), a leading Chinese artificial intelligence company, fell in the fourth quarter due to geopolitical uncertainties and COVID[1]related lockdowns. We retain conviction that Baidu will deliver strong earnings growth over the next several years, driven by the secular growth in digital advertising, market share gains in cloud computing, continued progress in autonomous vehicle development, and improving operational efficiency.”
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Disclosure: None. 13 Best Asian Stocks To Buy Today is originally published on Insider Monkey.
