Asian stocks still offer long-term value

With stockmarkets up 90% in just seven months, some people may worry that Asian equities are in a bubble. But although Asia's not cheap any more, it's still not generally expensive, says Cris Sholto Heaton. Here, he explains where to find the continent's best value.

It's been a spectacular year - the MSCI Asia ex-Japan is up 90% since March. In the past, a recovery on that scale has normally taken two years or more; this time it's been just seven months.

Naturally many investors worry that this is too much too soon. They fear equities may be back into another bubble, inflated by easy money policies from central banks.

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Australia (S&P/ASX200)97.8217.172.03
China (CSI300)33.6322.083.25
Homg Kong (Hang Seng)22.8417.11.98
India (Sensex)21.0220.13.55
Indonesia (JCI)32.6215.682.7
Japan (Topix)negative38.281.11
Malaysia (KLCI)23.6217.12.15
Philippines (PSEi)16.3214.392.05
Simgapore (STI)20.7217.421.65
South Korea (Kospi)35.9514.181.29
Taiwan(Taiex)120.1725.142.15
Thailand (SET)29.5313.291.62
Vietnam (VNIndex)22.9517.622.87
Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.