SLI's Teverson on battered Asian stocks

ON EMS

Although improving prospects for developed economies has left emerging markets bereft of love, conditions are improving for a number of Asian companies, explains Standard Life's Ross Teverson.

Emerging market equities trailed developed markets last year on concerns about the impact of tapering and the possibility of a slowdown in China.  Consensus thinking appears to be that 2014 will bring more of the same lacklustre performance, given that macro headwinds are likely to persist. However, with so much airtime having been given to the risks weighing on emerging markets, investors should be asking how much negativity is already reflected in share prices.  Relative weakness over the past 18 months has left valuations looking cheap compared to history and to developed markets. ...