Historically cheap valuations will support Asian equities

RBS argues that while the upside will be capped by the debt overhang in Europe, the potential rewards for buying Asian equities now outweigh the risks.

Given the lacklustre US recovery and the debt overhang in Europe, the payoff structure for Asian markets this year is similar to writing a put option — one in which the upside is capped and the downside could be substantial, Royal Bank of Scotland says in a report published yesterday.

¬ Haymarket Media Limited. All rights reserved.

Sign in to read on!

Registered users get 2 free articles in 30 days.

Subscribers have full unlimited access to FinanceAsia.

Not signed up? New users get 2 free articles per month, plus a 7-day unlimited free trial.

Questions?
See here for more information on licences and prices, or contact [email protected].

Share our publication on social media
Share our publication on social media