focus-on-earnings-not-valuations-says-jpmorgan

Focus on earnings not valuations, says JPMorgan

The US bank remains bullish on Asian equities for 2008, projecting a fifth straight year of gains for regional markets.
Having correctly projected in September that the Hang Seng Index would reach 29,000 thanks to strong liquidity inflows, JPMorgan is now sticking its neck out suggesting there is still room for Asian equity valuations to rise. The investment bankÆs current 2008 year-end target for the HSI is 35,000 points, indicating more than a 20% upside from current levels.

The bankÆs other forecasts for next year include a 22,000-point call for the H-share index, indicating a 24% upside and a 22,500-point target for the Mumbai Sensex index which is 18% above where it is trading at the moment.

Given that the Asia-Pacific ex-Japan indices are up 40% year-to-date and the 12-month forward price-to-earnings multiple of...
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