China

Look for a recovery in the second half of 2009 once a $582 billion stimulus package kicks in. The Shanghai bourse tanked before the rest of the world—dropping 60% this year—so it could recover before other markets.
Strategies: Jing Ulrich of JPMorgan says that with 45% of China’s stimulus package aimed at building airports, high-speed rail lines, and power plants, cement maker Anhui Conch and power generator China Shenhua look inexpensive. Paul Pong of Pegasus Fund Managers says sportswear maker Li Ning will benefit from the afterglow of the Beijing Olympics.