Valuations remain a hurdle in Japan

However, we’ve uncovered two recent opportunities that meet our criteria

Time to read: 2 min

Japan has been a market where investors have been buying growth at all costs, and the opportunity set remains limited from a valuation perspective, in our view. However, the Invesco International and Global Growth team has been able to identify select opportunities so far this year. Invesco International Growth Fund remains underweight Japan, but we added to our exposure in the second quarter in companies that meet our Earnings, Quality and Valuation (EQV) criteria.


Asia feels the symptoms of China’s declining economic health

China’s weakness has opened the door for new investment opportunities in the region

Time to read: 2 min

“When China sneezes, the rest of Asia catches a cold.” That’s an old saying, but it’s taken on new relevance as Asia’s symptoms have recently worsened. Concerns over the US-China trade war and weaker currencies have taken their toll on the region.


Tapping the brakes in Brazil

The recent truck driver strike could have lingering consequences for the economy

Time to read: 2 min

Brazil has historically been a market of “feast or famine” for investors. This was illustrated once again over the past several weeks as the economic environment changed fairly dramatically in a relatively short period of time. As of mid-July, economists are expecting 2018 gross domestic product (GDP) growth of 1.8%, whereas as recently as May, they were expecting 2.5% growth for the year.1


What’s the outlook for Asian equities?

Earnings expectations dim across the region, while China’s reforms remain a bright spot

Time to read: 4 min

The synchronized global recovery is being felt across Asia, but the level of opportunity varies by region. Below, I discuss the macro environment as well as the Earnings, Quality and Valuation (EQV) statistics that influence my team’s bottom-up stock-picking decisions.

Japan: Earnings are a bright spot, but quality is lacking

The Japanese stock market reached a new 25-year high in 2017, and the Nikkei 225 Index posted a 10% return in the fourth quarter.1 However, even with a 22% full-year return for the index, Japan was the weakest international region in 2017,1 and it’s the largest underweight of Invesco International Growth Fund.

On the bright side:


Latin America: Will politics overshadow GDP growth?

Earnings expectations are improving in Brazil, but high uncertainty hinders Mexican growth

Time to read: 2 min

On the back of a broad pickup in Latin American economic activity, real gross domestic product (GDP) growth is expected to accelerate this year.1 However, continued political uncertainty and critical elections in Mexico and Brazil could weigh on the region. With market exposure in both countries, what are the key areas the Invesco International Growth Fund team will be watching in 2018?

Brazil: Earnings expectations are on the rise, but political doubts linger

Despite a year of political turmoil and delayed reform, Brazil’s fundamentals showed signs of