Asia not only offers attractive absolute value, but presents an even more compelling investment case relative to the MSCI World, which is trading on a 2018 forecasted P/E multiple of 15x and is more than 2x P/B.
The outlook for the Chinese economy typically dominates the outlook for Asian equities. And for good reason: it is the largest economy in the region. Historically, the plights of the nine other economies that make up the "Asian 10" have often closely mirrored that of China, save perhaps, India. This is a double-edged sword, as any deterioration in the Chinese economy can have a destabilising impact on the region. That said, the outlook for the Chinese economy has improved over the past 18 months. Fears of a hard landing and significant devaluation have receded and there is greater...
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