BABA - The Deteriorating State Of Earnings In Asia
By Brent Bates, Senior Portfolio Manager on Feb 7, 2019, in Equities
When will prices in China and Japan become attractive?
Slowing global trade has weighed down export-oriented markets in Asia, and the regional earnings outlook has been deteriorating rapidly. Over the past six months, earnings expectations have been revised down 4% for the MSCI All Country Asia Pacific Ex-Japan Index.1 For December, the earnings revision ratio (which compares positive versus negative revisions) fell to 0.39, the worst reading ever recorded outside of a recession.2 The downgrades were broad-based and included all Asian