Under-the-radar facts about Asia equities
While headwinds remain for the region, valuation for Asian stocks is undemanding - especially in comparison with some of the over-crowded markets such as the US and Europe. By Hue Lu
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INVESTOR sentiment has turned more positive on emerging markets (EM) in recent months, including those in the Asian region, with the MSCI AC Asia ex-Japan index rebounding by around 15 per cent since its mid-January trough (as of April 30).
The surprising reversal in global commodity prices was a critical factor behind the recent rally in under-owned, resource-correlated EM markets. The turnaround in Asian equities, on the other hand, has been driven more by the fact that some major market overhangs have receded.
For example, few if any economists are now projecting an aggressive US rate hike cycle this year. Also, China's real estate market is clearly recovering, and its macroeconomic data print since March is showing moderate improvement.
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