NEW YORK (
) -- From Korea to Brazil, today's daily investment series is all about putting your money in overseas markets. After a horrible year for emerging markets in 2011, analysts say a rebound may be in the works. Here's what you need to know before building an international equities basket:
1) Two Sectors Shine in South Korea
Technology and consumer remain Credit Suisse's top picks for sectors to invest in within the South Korean market.
While the Korean Stock Exchange's KOSPI index has rebounded this year, sector gains are far from equal. The broader market is up 10.2% since the end of the 2011 third quarter. Meanwhile, for the same time period, utilities are up 15.8% and technology stocks are up 12.5%. Leading the losses have been telecoms, down 15.7%, and consumer stocks, down 13.5%.
Investors should watch for fourth quarter results from Korean corporations. "In the case for energy and material sectors, for example, the Street has cut fourth quarter 2011 operating profit estimates by about 19% in early January this year from that of October and November 2011," writes Credit Suisse. "On the other hand, sectors such as auto, technology and consumer have all seen an increase in OP estimates for fourth quarter 2011, by about 5%, 3% and 5%, respectively..."
Credit Suisse doesn't want to jump to conclusions for the year based on preliminary data, but it does believe that tech and consumers could lead earnings for the year.
The firm picks ten top stocks for the year: Samsung Electronics, multinational steel maker
(PKX - Get Report)
, Hyundai Motor, auto parts company Hyundai Mobis, Korea's largest chemical company LG Chemical, Hyundai Department Store, Hyundai Home Shopping, the world's largest LCD panel maker LG Display, online video game company NCsoft and the largest financial company in Korea Shinhan Financial Group.