Asian equity markets have underperformed developed markets since around the taper tantrum in 2013, driven partly by monetary policy and tax cuts in the US and partly by investors’ caution on Asia.
As a result, Asia ex-Japan equities now look attractively valued relative to both their own history and the rest of the world - especially the US. In addition, investors appear to be underestimating the fundamental strength of Asian companies. Balance sheets are more robust than in developed markets with significantly lower debt, and profitability is strengthening after a period of weakness. NCI seeks to bolster UK's reputation in Asia Pacific with proposal for new fund structure Corporate earnings growth this year could be higher in Asia than in developed markets, for the firs...
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