Earnings Optimism in India Pulls Away From Stagnant China

Indian companies are inspiring more optimism than their Chinese rivals for next earnings season.

Helped by a more favorable domestic economy and bets the country will better navigate global trade tension, Indian earnings estimates have been revised up 3.8% since March, while those for China are down 3.4%, according to Bloomberg Intelligence data.

Asia’s two most populous markets are finding themselves on diverging tracks, ranging from the thrust of their domestic economy to how Beijing and Delhi are tackling the threat of US tariffs. That’s likely to show up in the next batch of earnings reports.

India’s growth momentum would ...