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BlackRock Warns of Bubble Forming in Asia Tech -- Market Talk

22 Nov 2017 6:48 am

0648 GMT - BlackRock sees bubbles forming in Asian tech stocks, and it's going underweight on the sector. "I think a bubble is starting to emerge," says Andrew Swan, head of Asian and global emerging-market equities at the firm, the world's biggest asset manager. He contends investors are failing to differentiate between companies in the sector where earnings are rising as quickly as their stocks. Swan points to recent hot IPOs in Hong Kong and stretched valuations as reasons for caution on the sector. He also warns of "exuberance" among internet companies and a need to be selective in both that sector and tech-hardware manufacturers, such as Taiwanese tech supply-chain companies. Swan right now prefers cyclicals in energy and finance, which are more tied to economic fundamentals. (gregor.hunter@wsj.com; @gregorhunter)

(END) Dow Jones Newswires

November 22, 2017 01:48 ET (06:48 GMT)

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