Reuters reports that analysts expect a strong turnaround in profits at Asian companies as regional economies see a surge in factory activity and an expansion in exports, helped by approvals for multiple coronavirus vaccines.

Asia's large- and mid-cap companies are expected to post profit growth of 26.4% in 2021, after an estimated 5% growth last year, according to Refinitiv data.

Singapore, South Korea and Japanese firms lead the earnings growth for the region this year, boosted by a surge in electronics exports.

The data also showed Chinese firms were to likely record an 18.8% rise in profits this year, compared with 10.5% in 2020.

“China could see further earnings upgrades driven by sustained business activity growth and online/offline retail sales growth albeit at a slower pace,” Goldman Sachs wrote in a report.

“India and Korea are also likely to see earnings revision upgrades helped by sustained strong manufacturing activity data and exports,” it said.