According to Yonhap News,

(SEOUL = Yonhap News) Korea, India and China (MSCI China) will outperform the world stock market in 2014, according to Credit Suisse’s forecast last week.

In its market outlook, the brokerage firm also said the three nations were the firm’s biggest overweight markets.

The Korean stock market may see changes in returns on equity ratio (ROE), as the capital expenditure to sales ratio of Korean companies may offset the nominal Growth Domestic Product (GDP) growth rate.

The Chinese market is also expected to find changes in ROE trends due to the reform measures adopted during the Third Plenary Session of the 18th CPC Central Committee.

The upcoming elections in India in May are expected to serve as potential catalysts for boosting the nominal GDP and return on common equity, according to Credit Suisse.

Meanwhile, the firm upgraded the rating on the Australian stock market from “underweight” to “overweight,” and reaffirmed their underweight rating on shares of Southeast Asian countries, including Thailand, Indonesia and the Philippines.

The firm maintained its opinion to increase investments on sensitive stocks and not defensives.