2019 Outlook: Asia ex Japan equities

Will optimism return to Asian equities in 2019?

Dec 10, 2018 | Mike Shiao

Key takeaways

  • We believe Asian markets may regain favor from international investors in 2019.
  • Regional governments are expected to roll out pro-growth policies to support domestic economies.
  • Asian companies are looking for opportunities to expand abroad, which represents an important change in mindset.

Contrary to 2017, when Asia ex Japan equities enjoyed a strong rally with extremely low volatility, 2018 has been a bumpy year. Global events, including rising trade tension and a stronger US dollar and yields, are preoccupying investors, masking solid economic growth from many countries in the region.

Will the tide turn in 2019? We believe there are good reasons that Asian markets will regain favor from international investors given:

  • Solid economic growth, supported by strong fundamentals and supportive policies.
  • Strong Asian companies, backed by dynamic growth drivers and expansion efforts.
  • Compelling valuations, offering an attractive entry point for quality companies.


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