Asian Markets Rally Amid Strong New Year Consumption, Despite Fund Manager Caution

Taiwan and Hong Kong lead market gains, as robust travel and consumption data contrast with fund managers' reduced exposure to China.

Asian equities rebounded with Taiwan leading the charge, jumping +3% after an analyst upgrade of Taiwan Semiconductor Manufacturing Company (TSMC).
Hong Kong's market rallied, led by Tencent, Alibaba, and other major stocks despite initial declines and light gaming activity during the New Year's.
Chinese New Year travel and consumption data show strong increases, with hotel bookings up +60% year-over-year and Meituan reporting a +36% YoY increase in daily consumption growth.
Fund managers are reducing their exposure to China, with nearly 80% underweight China according to recent research, despite several hedge funds increasing their China weights based on Q4 SEC filings.
Six mega-banks in Hong Kong announced actions to support financing needs for real estate projects, marking a step to support the beleaguered sector.