Hugh Young, how did ASEAN markets fare last year?
Alongside other emerging markets, the region was hurt by the indiscriminate sell-off. The MSCI Southeast Asia index was down 7.5% in USD terms, versus the regional MSCI Asia Pacific ex-Japan index, which was flat. Laggards included Indonesia and Thailand, which posted negative returns, while Malaysia outperformed. Looking ahead, smaller, less liquid markets are starting to look oversold. Overall, Asian markets are attractively valued, with a prospective priceto- earnings multiple of 12X for FY2014.
How about earnings?
We expect a modest improvement in earnings growth, in the high single digits. Whilst the pace of earnings growth is slower than it has been historically, there is...
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