October 15, 2015 / 7:53 AM / 2 years ago

BUZZ-Expensive Asia markets start to underperform

** MSCI India, MSCI Philippines and MSCI Japan underperform MSCI Asia Ex Japan by 6-11 pct from their August highs

** Philippines at 18.9x, India at 18.3x and Japan at 17x are the three most expensive markets in Asia on one-year forward P/E - Eikon data

** “We see more room for underperformance, as investors have been ”hiding“ in India and the Philippines-markets with minimal China exposure and domestically driven,” Credit Suisse analysts Sakthi Siva and Kin Nang Chik say

** Says for India the key catalysts are continued EPS misses, potential stabilisation in China macro

** Adds Japan’s key trigger is the stalling of the yen, particularly if it was a key driver of rising Japanese ROE (RM: abhishek.vishnoi.thomsonreuters.com@reuters.net)

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