In this article, we discuss 12 best Asian stocks to buy today.
Higher energy and food prices are impacting the economies of developing Asian countries more than the rest of the world. According to a report by the Asian Development Bank, this is one of the key reasons why inflation numbers in Asia are increasing, even as they flatten or register minor drops across the world. The bank has raised the regional inflation forecast to 4.5% for this year and 4.0% for next year. Growth forecasts made in April, meanwhile, have been revised as well, down to 4.3% for this year and to 4.9% for next year.
The bank claims that some of the reasons behind the bearish outlook include a slowdown in global growth, stronger-than-expected monetary policy tightening in advanced economies, the Russian invasion of Ukraine, a deeper-than-expected deceleration in China, and negative pandemic developments. However, the slowdown has also created buying opportunities in the Asian economy that offer explosive growth potential. Many of these firms are in China. Some of the best Asian stocks to buy now in this context include Alibaba Group Holding Limited (NYSE:BABA), JD.com, Inc. (NASDAQ:JD), and Baidu, Inc. (NASDAQ:BIDU).
Our Methodology
The companies that have deep links with the Asian economy were selected for the list. The analyst ratings of these firms and the latest updates related to them are also discussed to provide some additional context. Data from around 900 elite hedge funds tracked by Insider Monkey in the second quarter of 2022 was used to identify the number of hedge funds that hold stakes in each firm.
Photo by Ruben Sukatendel on Unsplash
Best Asian Stocks To Buy Today
12. SoftBank Group Corp. (OTC:SFTBY)
Number of Hedge Fund Holders: N/A
SoftBank Group Corp. (OTC:SFTBY) provides telecommunication services in Japan and internationally. On September 22, Masayoshi Son, the CEO of the firm, said that he would be traveling to South Korea next month to discuss a strategic tie-up between the chip design unit of his firm, Arm, and electronics giant Samsung. Reports suggest that the company is planning to list Arm in an initial public offering in the US, but intends to keep a majority stake in the chip design firm it bought for $32 billion in 2016.
In addition to Alibaba Group Holding Limited (NYSE:BABA), JD.com, Inc. (NASDAQ:JD), and Baidu, Inc. (NASDAQ:BIDU), SoftBank Group Corp. (OTC:SFTBY) is one of the best Asian stocks to buy now.
11. Tata Motors Limited (NYSE:TTM)
Number of Hedge Fund Holders: 8
Tata Motors Limited (NYSE:TTM) designs, develops, manufactures, and sells various automotive vehicles. On September 1, the company reported that sales for the month of August had grown 36% compared to last year. The Indian automobile maker sold 78,843 vehicles in the domestic and international market during the month, compared to 57,995 units sold in August 2021. Total domestic sales grew 41% year-on-year to 76,479 units, with commercial vehicle sales up 6% to 31,492 units and passenger vehicles sales up 68% to 47,166 units.
At the end of the second quarter of 2022, 8 hedge funds in the database of Insider Monkey held stakes worth $45 million in Tata Motors Limited (NYSE:TTM), compared to 10 the preceding quarter worth $88 million.
10. Toyota Motor Corporation (NYSE:TM)
Number of Hedge Fund Holders: 12
Toyota Motor Corporation (NYSE:TM) designs, manufactures, assembles, and sells passenger vehicles, parts, and accessories for vehicles. On September 22, the firm announced that it was planning to produce nearly 800,000 vehicles in the month of October. The figure is 100,000 short of the average monthly production of the automaker. The decline in production is largely being attributed to a semiconductor shortage that is hitting car makers across the world.
On July 13, UBS analyst Kohei Takahashi maintained a Buy rating on Toyota Motor Corporation (NYSE:TM) stock and lowered the price target to 2,300 yen from 2,500 yen, backing the firm for stable earnings in the coming years.
At the end of the second quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $849 million in Toyota Motor Corporation (NYSE:TM), compared to 9 in the previous quarter worth $952.9 million.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Toyota Motor Corporation (NYSE:TM) was one of them. Here is what the fund said:
“Toyota’s (NYSE:TM) “kaizen” manufacturing philosophy is based on improving manufacturing by using “just in time” processes to eliminate waste and reduce inventory carrying costs. Clearly the company does not contemplate disruptive change that will dramatically lower costs and improve quality.”
9. Infosys Limited (NYSE:INFY)
Number of Hedge Fund Holders: 24
Infosys Limited (NYSE:INFY) provides consulting, technology, outsourcing, and next-generation digital services. On September 20, the company revealed that it had entered into a deal with Telenor Norway under which the former will assist the latter with modernization of telecom infrastructure. Infosys Limited (NYSE:INFY) said it would collaborate with the communications giant in digital, analytics, artificial intelligence, and operational applications. The partnership will also focus on upskilling and competency development.
On July 25, Wedbush analyst Moshe Katri maintained an Outperform rating on Infosys Limited (NYSE:INFY) stock and lowered the price target to $25 from $30, noting the firm provided plenty of ammunition for bulls and bears in the Q2 earnings report.
At the end of the second quarter of 2022, 24 hedge funds in the database of Insider Monkey held stakes worth $988 million in Infosys Limited (NYSE:INFY), compared to 48 the preceding quarter worth $2.3 billion.
8. NetEase, Inc. (NASDAQ:NTES)
Number of Hedge Fund Holders: 26
NetEase, Inc. (NASDAQ:NTES) provides online services focusing on diverse content, community, communication, and commerce in China. It is one of the premier Chinese stocks to invest in. On August 31, the company announced that it had purchased Quantic Dream, a gaming studio based in France that is led by David Cage and Guillaume de Fondaumière. The Chinese firm said that Quantic would continue to operate independently, focusing on creating and publishing video games on all platforms.
On August 19, investment advisory Citi maintained a Buy rating on NetEase, Inc. (NASDAQ:NTES) stock and raised the price target to $140 from $132. Analyst Alicia Yap issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Bermuda-based investment firm Orbis Investment Management is a leading shareholder in NetEase, Inc. (NASDAQ:NTES), with 3.67 million shares worth more than $342 million.
Just like Alibaba Group Holding Limited (NYSE:BABA), JD.com, Inc. (NASDAQ:JD), and Baidu, Inc. (NASDAQ:BIDU), NetEase, Inc. (NASDAQ:NTES) is one of the best Chinese stocks to buy now according to hedge funds.
7. HDFC Bank Limited (NYSE:HDB)
Number of Hedge Fund Holders: 34
HDFC Bank Limited (NYSE:HDB) provides banking and financial services to individuals and businesses in India, Bahrain, Hong Kong, and Dubai. The company was founded in 1994 and is based in India. It has a market capitalization of close to $100 billion. Some of the accounts it offers include savings, salary, current, rural, public provident fund, pension, and Demat accounts, as well as safe deposit lockers, offshore accounts and deposits, overdrafts against fixed deposits, and sweep-in facilities.
At the end of the second quarter of 2022, 34 hedge funds in the database of Insider Monkey held stakes worth $2.2 billion in HDFC Bank Limited (NYSE:HDB), compared to 41 the preceding quarter worth $2.1 billion.
In its Q4 2021 investor letter, Motiwala Capital, an asset management firm, highlighted a few stocks and HDFC Bank Limited (NYSE:HDB) was one of them. Here is what the fund said:
“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.”
6. Coupang, Inc. (NYSE:CPNG)
Number of Hedge Fund Holders: 37
Coupang, Inc. (NYSE:CPNG) owns and operates an e-commerce business through its mobile applications and websites primarily in South Korea. The firm posted earnings for the second quarter of 2022 on August 10, reporting a revenue of more than $5 billion, up more than 12% compared to the revenue over the same period last year. The firm said that total gross profit during the quarter was $1.2 billion, an increase of 75% compared to the total gross profit over the same period last year.
On August 15, Morgan Stanley analyst Seyon Park maintained an Overweight rating on Coupang, Inc. (NYSE:CPNG) stock and increased the price target to $25 from $18, noting that high margin ads were driving a faster EBITDA trajectory for the firm.
Among the hedge funds being tracked by Insider Monkey, Dallas-based investment firm Maverick Capital is a leading shareholder in Coupang, Inc. (NYSE:CPNG), with 84.5 million shares worth more than $1 billion.
In addition to Alibaba Group Holding Limited (NYSE:BABA), JD.com, Inc. (NASDAQ:JD), and Baidu, Inc. (NASDAQ:BIDU), Coupang, Inc. (NYSE:CPNG) is one of the best Asian stocks to buy now.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Coupang, Inc. (NYSE:CPNG) was one of them. Here is what the fund said:
“During the quarter, we also added to our position in the leading Korean e-commerce player, Coupang, Inc. (NYSE:CPNG), taking advantage of the stock’s volatility. While the stock sold off, the business remains robust, growing revenues by 32% in the most recent quarter (year-over-year in constant currency) while gaining market share (the industry grew 8%) and reaching profitability in its product commerce segment three quarters ahead of plan.”
5. Pinduoduo Inc. (NASDAQ:PDD)
Number of Hedge Fund Holders: 41
Pinduoduo Inc. (NASDAQ:PDD) operates an e-commerce platform in the People’s Republic of China. It is one of the top Chinese stocks to invest in. The stock has gained in the past few weeks on the back of strong earnings and sales numbers that suggest that consumer strength is growing in the Asian country. The recovery in consumer sentiment in China is being attributed to the easing of COVID-19 lockdowns across the country. An upcoming shopping festival is set to boost this sentiment further.
On September 9, investment advisory Barclays maintained an Equal Weight rating on Pinduoduo Inc. (NASDAQ:PDD) stock and raised the price target to $66 from $45. Analyst Jiong Shao issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm GQG Partners is a leading shareholder in Pinduoduo Inc. (NASDAQ:PDD), with 6.1 million shares worth more than $380.8 million.
In its Q4 2021 investor letter, Tao Value, an asset management firm, highlighted a few stocks and Pinduoduo Inc. (NASDAQ:PDD) was one of them. Here is what the fund said:
“On the detracting side, one of our largest detractors includes Pinduoduo (ticker: PDD). Pinduoduo (PDD) reported the second consecutive GAAP profit quarter yet missed on the revenue due to nation-wide consumption weakness & scaled back Sales & Marketing efforts. Market disliked it and the stock price plunged on the earnings. In my opinion, the accounting profits proved the original thesis of using S&M to acquire users and using great shopping experience to keep them. After realizing the first growth curve, Pinduoduo now shifted its focus & investment to agriculture. It is still very early, but the reduced size due to price drop warrants a position to watch and continue to grow with such a team with a strong culture.”
4. Baidu, Inc. (NASDAQ:BIDU)
Number of Hedge Fund Holders: 45
Baidu, Inc. (NASDAQ:BIDU) offers internet search services in China. The firm is among the best Chinese stocks to invest in. On August 30, Baidu, Inc. (NASDAQ:BIDU) posted earnings for the second quarter of 2022, reporting a revenue of $4.43 billion, down over 5% compared to the revenue over the same period last year but beating market estimates by around $230 million. The firm said that the earnings per share in the second quarter were $2.36, beating estimates by $0.79.
On September 16, investment advisory UBS initiated coverage of Baidu, Inc. (NASDAQ:BIDU) stock with a Buy rating and a price target of HK$191.30. Analyst Wei Xiong issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Ariel Investment is a leading shareholder in Baidu, Inc. (NASDAQ:BIDU), with 2.6 million shares worth more than $393 million.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Baidu, Inc. (NASDAQ:BIDU) was one of them. Here is what the fund said:
“Baidu, Inc. (NASDAQ:BIDU), a leading Chinese artificial intelligence company, contributed to performance in the second quarter due to an improving outlook for its mobile ecosystem, continued market share gains in cloud computing, solid progress in autonomous vehicle development, and improving operational efficiency. We see significant upside for Baidu, given its strong competitive position across several of China’s key growth industries.”
3. JD.com, Inc. (NASDAQ:JD)
Number of Hedge Fund Holders: 62
JD.com, Inc. (NASDAQ:JD) provides supply chain-based technologies and services in China. The company is one of the most prominent Chinese stocks to invest in. Reports suggest that JD.com, Inc. (NASDAQ:JD) is on a list of Chinese firms that are set to be audited in the United States by independent auditors. The report comes merely days after the US and China reached an agreement regarding transparent auditing processes with regards to Chinese firms listed in the US.
On September 12, Susquehanna analyst Shyam Patil maintained a Neutral rating on JD.com, Inc. (NASDAQ:JD) stock and increased the price target to $62 from $55, noting that the second quarter earnings of the firm were solid despite macro headwinds.
At the end of the second quarter of 2022, 62 hedge funds in the database of Insider Monkey held stakes worth $5.5 billion in JD.com, Inc. (NASDAQ:JD), compared to 59 in the previous quarter worth $5.4 billion.
In its Q3 2021 investor letter, Argosy Investors, an asset management firm, highlighted a few stocks and JD.com, Inc. (NASDAQ:JD) was one of them. Here is what the fund said:
“We sold JD.com, Inc. (NASDAQ:JD) as a result of the furor over Chinese stocks during the quarter. We had been concerned about China’s lack of respect for investor rights for some time, and Beijing has become significantly more aggressive in asserting itself of late. In addition, the legal structure Chinese companies use to come public in the U.S., a Cayman Islands shell corporation leaves American investors with an unsure path to recovering value should these companies cease to trade on U.S. exchanges. Because of the uncertainty, we exited our position in JD completely. We still love JD’s long-term prospects, but we cannot estimate the legal/regulatory risk associated with these companies anymore. More broadly, we are freeing up cash for some other positions we already own which have declined in this market, and after additional review, remain attractive.”
2. Sea Limited (NYSE:SE)
Number of Hedge Fund Holders: 65
Sea Limited (NYSE:SE) engages in the digital entertainment, e-commerce, and digital financial businesses. In mid-May, the sovereign wealth fund of Saudi Arabia, one of the biggest investors in the world, acquired a large stake in the company. The fund bought close to 240,000 shares in the tech firm. The purchase came even as video game sales, one of the biggest sources of revenue for the firm, continued to fall. However, despite the falling sales, there are signs video game demand is stabilizing back to pre-pandemic levels.
On August 18, Barclays analyst Jiong Shao maintained an Overweight rating on Sea Limited (NYSE:SE) stock and lowered the price target to $114 from $125, noting that many macro factors had become more uncertain in recent months for the firm.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Tiger Global Management is a leading shareholder in Sea Limited (NYSE:SE), with 8.2 million shares worth more than $548 million.
In its Q1 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Sea Limited (NYSE:SE) was one of them. Here is what the fund said:
“Sea Limited (NYSE:SE), a global digital gaming and e-commerce company, detracted from performance for the period held. Similar to other online consumer businesses, Sea faced significant multiple compression in the quarter, exacerbated by a slowdown in user growth at its key Free Fire digital game and mounting investments in its e-commerce operation, particularly in new markets like Brazil. We exited our position as we lost confidence in the long- term unit economics in some of Sea’s new markets and were concerned by the simultaneous slowdown in revenue growth and increase in underlying cash burn.”
1. Alibaba Group Holding Limited (NYSE:BABA)
Number of Hedge Fund Holders: 106
Alibaba Group Holding Limited (NYSE:BABA), through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses. It is one of the premier Chinese stocks to invest in. On September 23, the company announced that it would be investing up to $1 billion over the next three years. Selina Yuan, the Alibaba Cloud Intelligence International President, said that revamped partner strategy prioritizes the growth of the partners.
On August 8, investment advisory Deutsche Bank maintained a Buy rating on Alibaba Group Holding Limited (NYSE:BABA) stock and raised the price target to $160 from $155. Analyst Leo Chiang issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, Washington-based investment firm Fisher Asset Management is a leading shareholder in Alibaba Group Holding Limited (NYSE:BABA), with 14 million shares worth more than $1.6 billion.
In its Q2 2022 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Alibaba Group Holding Limited (NYSE:BABA) was one of them. Here is what the fund said:
“Alibaba Group Holding Limited(NYSE:BABA) is the largest retailer and e-commerce company in China. Alibaba operates shopping platforms Taobao and Tmall and owns 33% of Ant Group, which operates Alipay, China’s largest third party online payment provider. Shares of Alibaba rose during the quarter, driven by an increasing focus on improving capital allocation, an improving regulatory environment, and government stimulus targeting Chinese consumers. We retain conviction that Alibaba will benefit from rapid growth in cloud services, logistics, and retail.”
You can also take a peek at 10 Best Healthcare Stocks to Buy According to Billionaire Larry Robbins and 10 Quality Stocks to Buy with Shares Down Over 30% YTD.
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Disclosure. None. 12 Best Asian Stocks To Buy Today is originally published on Insider Monkey.
