Greg reshuffling its global stocks deck

Описание: New Zealand equities have opened the week on a muted note, down 0.4% as investors brace for a critical earnings season. Greg Smith from Generate KiwiSaver points to mixed performance among major names such as Fish & Bicycle, which trades nearly 2% lower. Smith highlights a low bar of expectations for the upcoming reporting season, with 34 out of the NZ 50 slated to release results before month-end. He suggests this deluge of reports will act as a vital gauge of corporate health, with particular attention on whether early signs of economic recovery are gaining momentum.

Turning to global markets, Smith notes significant activity on Wall Street, with the Dow crossing 50,000 amidst a rotation from technology stocks to more economically sensitive sectors. He remarks on the challenges within the tech sphere, where software services have dropped 18% this year despite strong earnings from Google (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN). Smith singles out Caterpillar (NYSE: CAT) for its solid performance, reflecting US economic resilience. He advises greater portfolio diversification, citing potential in health and consumer goods sectors over relying solely on large-cap technology stocks like Meta (NASDAQ: META).

In Asia, Smith draws attention to Japan's political landscape and the recent yen depreciation, suggesting exporters could benefit. He points out increased exposure to Japanese companies such as ASICS (TYO:7936), viewing the region's prospects favourably.