What happens next for Asian equities after a 'tough year'?

Asian stockmarkets have had a tough year, culminating in October as trade tensions, a strong US dollar, rising bond yields and weaker Chinese macro data combined to send share prices sharply lower.

While market sentiment has been undoubtedly weak, it is worth taking a step back to see where we stand. The two sectors in Japan with the potential to add 'differentiated value' On the face of it, Asia has given up all the valuation re-rating that it achieved since the end of 2015. Following the price declines, the index now trades on a price/earnings multiple of 11.9x 2018 estimated earnings and 11.1x 2019 earnings - a level around one standard deviation below the ten-year average.  However, in the period 2010-2015, Asian earnings contracted by 0.5% per annum on average. In contra...