Post detailed analysis of historical absolute & relative PE of AxJ markets, juxtaposed with their earnings environment, we posit: KR & PH to rerate, IN to derate. HK, TW, ID, SG may rerate modestly.
What is covered in the Full Insight:
Introduction to Asian Equities Valuations
Juxtaposing Market Valuations with Earnings
Bullish Markets: Korea and Philippines
Bearish Outlook for India
Stable but Discounted: Hong Kong, Indonesia, and Others
Boomeranged on Thu, 17 Jul 2025 12:15
Korea's, Hong Kong's and Singapore's continued rerating is in line with our expectations, as is the derating of India - especially when it comes to valuations relative to Asia ex Japan. Indifferent performance of Thailand and Malaysia doesn't surprise us - we expected these markets to remain cheap as earnings estimates disappoint. However, Philippines' continued derating is a surprise to us.