US-North Korea Summit Talks Resume: 4 MedTech Stocks To Watch
Zacks Investment Research | May 29, 2018 09:28PM ET
President Donald Trump’s calling off of the summit with North Korean leader Kim Jong Un last Thursday was quite a shocker.
The abandonement of summit plans dealt a blow to the underpenetrated and emerging markets of Asia, which are a solid source of revenues for more than 80% of U.S.-based multinational companies. The effects of the political mayhem caused the MSCI’s broadest index of Asia-Pacific shares outside Japan, South Korea’s KOSPI and Japan’s Nikkei to plummet.
Major Wall Street indices, S&P 500 and the Dow Jones Industrial Average, lost ground as well.
Considering this trend of downward movements, the White House decided to conduct the meeting. The United States announced its plans to send a “pre-advance team” to Singapore to prepare for Trump-Kim summit on Jun 12.
MedTech appears to be one of the very few sectors that might shelter investors from the political tension. Shrugging off the current volatility, the Medical-Products industry has returned 0.2% since the call-off against the S&P 500’s fall of 0.4%.
In fact, analysts believe that the MedTech sector will be able to strengthen its foothold at a faster rate if the meeting goes on as planned.
This is because there are a number of U.S.-based MedTech companies operating in Asia. Post the success of the summit, these companies will be able to spread their network in North Korea and augment overall production. Per research by Statista, the MedTech market in the Asia-Pacific region is estimated to reach a worth of around $78 billion in 2018.
Buoyed by the encouraging projections, it would rather be interesting to see how the Zacks Investment Research
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