2018 Outlook: Can stability in the region extend Asia's outperformance?

Bottom-up opportunities are arising from Asia’s stable backdrop

Dec 1, 2017 | Mike Shiao

2017 has been a good year for Asian equities so far, rising 36% and outperforming the rest of the world.  The strong performance has been supported by steady economic conditions and robust corporate earnings. Yet still, Asia is trading at its lowest price-to-book ratio relative to the S&P 500 Index in 15 years.

So where do we go from here? Our view is that there are three positive fundamental structural drivers that can help Asian markets remain strong in 2018:

• Stability on various fronts, including economic growth and policy decisions
• Good opportunities driven by earnings, liquidity and valuations
• A reduction in risk

 

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