People line Victoria Harbor in the Tsim Sha Tsui district of Hong Kong.
Justin Chin | Bloomberg | Getty Images
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Asia is expected to recover from the worst pandemic this year, and analysts expect earnings growth in the region to be stronger than in the West.
Some have predicted that revenues in Asia could increase by more than 20% this year.
Morningstar research firm pointed out that investors have already been piling up in cyclical sectors, triggered by positive vaccine news, ahead of higher earnings this year, which is likely to boost Asian markets.
Cyclical stocks are stocks that are linked to the economic cycle and typically outperform when the economy improves.
With President-elect Joe Biden due to be sworn in this week, market uncertainty could be further reduced, the research firm said, pointing out that Biden would be more predictable in foreign policy.
Morningstar is optimistic about three sectors and lists the best choice for each.