Asian markets: Carrying some positive momentum into 2017

Is this the beginning of a long-awaited up cycle?

Last November, the Invesco International and Global Growth team reported that in Asia ex-Japan, the building blocks were in place to shore up top-line growth. Our outlook for Earnings, Quality and Valuation (EQV) was cautiously positive. 2016 marked the first time in five years where earnings forecasts did not collapse at year-end, and an upward bias to earnings forecasts has continued into 2017. Is this the beginning of a new earnings growth cycle?

For years, slowing top-line growth in Asia, combined with an inability to raise prices, had driven consistently negative earnings revisions. So far, 2017 is proving to be different. Earnings forecasts are being revised


Asian markets: Building blocks, stumbling blocks and opportunity

More discriminating Asian markets and improving Japanese valuations warrant investors’ attention

Bates_Brently_150_rgb_greyIn Asia ex-Japan, the building blocks are in place for shoring up top-line growth. And although quality remains the biggest stumbling block in Japan, valuations have been improving. Let’s take a closer look at Asian markets through the Earnings, Quality and Valuation (EQV) lens that the Invesco International and Global Growth team uses to evaluate potential investment opportunities.

Asia ex-Japan: Global growth is key

For the past several years, slowing topline growth in the Asian region — along with an inability to pass along cost pressures — led to