On Investors’ Minds - APAC Edition cover image

On Investors’ Minds - APAC Edition

21. Is it time for Asian equities to shine again?

Oct 31, 2023
The podcast discusses investment opportunities in Asian equities, covering the macroeconomic environment, market specific issues, corporate earnings, manufacturing purchasing manager indices, valuations, dividend growth, and potential impacts on Asian assets.
06:22

Podcast summary created with Snipd AI

Quick takeaways

  • Asian equities are expected to rebound in 2024 with significant earnings growth in Taiwan and South Korea.
  • Asian equities, especially high-dividend companies, offer attractive opportunities for investors due to improved corporate earnings and potential international capital flows returning to the region.

Deep dives

Improved Earnings Outlook and Valuations

Asian equities have seen negative returns in recent years, but the earnings outlook is expected to improve. While earnings growth contracted in 2023 due to Taiwan and South Korea, it is forecasted to rebound in 2024 with expected EPS growth of 22% and 70% respectively. The relationship between Asia Extra-Pant Corporate Earnings and Asia Extra-X China Export Growth indicates a strong link between corporate earnings and exports in the region. In terms of valuations, Asia Extra-Pant is trading at 1.5x price to book, historically indicating a high probability of positive returns in the next year.

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