Security
MXJP Security Research Hub
Recent institutional research into the MSCI Asia Pacific ex-Japan (MXAPJ) index highlights a period of significant regional bifurcation despite a strong 17.2% year-to-date return. Performance has been heavily concentrated in North Asian markets like Korea and Taiwan, propelled by a massive year-to-date surge in the Information Technology sector ranging from 66.1% to over 70%. Conversely, Southeast Asian markets have lagged considerably, with Indonesia down nearly 23% year-to-date, raising concerns regarding overall market breadth. Valuation analysis suggests growing caution as price-to-earnings ratios remain elevated and the equity/bond yield gap has narrowed to approximately 340 basis points. This compression indicates that equities are becoming increasingly expensive relative to sovereign bonds, though analysts maintain a 12-month upside target of 16% for the index. The research direction emphasizes a transition from broad regional optimism to a more scrutinized assessment of stretched technical indicators and sectoral concentration risks.
4 reports available
Asian Equity Market Daily Update
Asian markets fell 0.6% on May 18, with significant performance dispersion between high-growth markets like Korea and underperforming markets like Indonesia. While the YTD return for MXAPJ remains strong at 18.5%, valuations are increasingly seen as expensive relative to fixed income.
Asian Equity Market Daily Update
The MSCI Asia Pacific ex-Japan Index fell 1.1% on May 19, 2026, though it remains up 17.2% YTD. Underperformance was led by Korea and Indonesia, while Info Tech lagged sectorally.
Asian Equity Market Daily Update
The MXAPJ index rose 0.4% on May 13, bringing YTD gains to 21.5%, though high valuations relative to bonds remain a point of concern.
Japan Equities: The Tide Has Turned and It's Still Rising
Japanese equities offer significant upside potential driven by structural corporate reforms and attractive valuations, particularly in the small-cap value segment. Despite recent strong returns, the market remains undervalued relative to global peers and supported by improving fundamentals.
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