Despite a volatile start, Asia ex Japan remains poised for further strength in 2018

Earnings growth, valuations and liquidity remain accommodative in Asia but the impact of external uncertainty requires monitoring       

Mar 6, 2018 | Mike Shiao

The recent decline in Asian markets is a healthy correction following an extended rally dating back to early 2017 and largely affected by global market movements. We haven’t observed any Asian-specific factors that have contributed to the sell-off.

Despite the market jitters, we believe there is no change to economic and corporate fundamentals in key markets within the region and we expect positive structural factors will continue to support further strength in Asian equities in 2018.

We also believe stable politics favor further reform. Asian leadership is stable, in particular within China and India, which will help underpin strong fiscal support and bode well for further reforms.

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