Mid-point review: Are there still opportunities for growth in Asia?

After a strong first half, we assess earnings, quality and valuation characteristics for the region

The first half of the year saw strong performances across Asia. The MSCI Asia ex-Japan Index gained 18% (the fifth-highest first-half performance in the index’s 30-year lifespan), and Japan grew 14%, as measured by the MSCI All Country World Index ex-US Growth benchmark.1 What does such strong absolute performance mean for our team’s regional outlook? Below, the Invesco International and Global Growth team assesses the Asian landscape through our earnings, quality and valuation (EQV) lens, which we believe can reward investors over the long term.

Asia ex-Japan: Still room for opportunity

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Three reasons why we’re bullish on Brazil

Despite political turmoil, we see long-term positives for Brazilian stocks

Just as Brazil seemed to be recovering from its worst recession in history, it took another hit last May. A secret recording surfaced of President Michel Temer allegedly discussing a scheme to pay hush money to jailed former speaker of the lower house, Eduardo Cunha. Since then, President Temer was cleared in early June of campaign finance violations, but was charged in late June with corruption related to a bribery scheme. This ongoing political turmoil has delayed the approval of much-needed pension and other reforms. And yet, Brazil’s current fundamentals are much stronger than at year-end 20161, with a benign inflation outlook, strong companies and a healthy balance of payments.

For us, as bottom-up investors, all of this adds up to potential opportunity. Below, I discuss the positive signs that the Invesco International and Global Growth team sees in Brazil.

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Five trends that could impact global small caps

From increased volatility to decreased analyst coverage, we highlight key areas to watch

The only constant is change — and the global market is certainly proof of that. As we assess our outlook for the rest of the year, we see several potential changes that could impact international small- and all-cap funds. Here are the five trends we anticipate having the biggest effect — and the ways the Invesco International and Global Growth team is poised to respond.

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Halftime: Mid-year global market review and outlook

Strong earnings growth prospects remain outside the US — in spite of longer-term uncertainty

In the aftermath of a tumultuous 2016, much discussion has centered around the equity outlook for 2017 and beyond. In fact, the second quarter saw continued strong performance from global markets, though in our view, the long-term earnings outlook remains murky. As we enter the second half of the year, Invesco’s International and Global Growth team assesses global equity performance to date through our EQV (earnings, quality and valuation) lens to identify the key areas to watch — along with potential growth opportunities.

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Emerging from the shadows — the case for emerging markets

A closer look at catalysts

After an extended period of weakness, emerging market equities have rebounded nicely year-to-date — outperforming developed market stocks by a sizeable margin, as measured by the MSCI Emerging Markets Index and MSCI EAFE Index.1 In my view, this strong performance has been driven by better macroeconomic conditions, strong earnings growth and discounted valuations relative to developed market equities.1

Let’s take a closer look at these emerging market catalysts:

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India’s GST bill rollout: Structural benefits in the offing

Largest-ever indirect tax reform is expected to promote sustainable economic growth

On July 1, 2017, India ushered in its largest-ever indirect tax reform — the rollout of the Goods and Services Tax (GST) bill. The GST replaced 16 different types of state and federal taxes with one common tax system, comprising four major tax rates (5%, 12%, 18% and 28%) and a few other special categories for specified items. The bill is intended to simplify the taxation structure and be tax-neutral, by charging at the rates of the goods and services close to the existing rates.

Major tax categories

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