MXASJ Fall Similar To 1994 And 2004 Episodes: Credit Suisse

With Fed tightening in the air, the MSCI Asia ex-Japan (MXASJ) has dropped 25% from the highs in the current episode, compared to the 21% to 25% corrections witnessed in 1994 and 2004. This suggests that history is repeating itself, according to Credit Suisse. Sakthi Siva and Kin Nang Chik pointed out in their Sept. 4 research report on APAC Equity Strategy that historically, the MXASJ has bottomed one month prior to two months after.

MXASJ P/B was much lower

Siva and Chik point out that amidst the possible Fed tightening move, the MSCI Asia (ex-Japan) has dropped 25% from the highs in the current episode as against the 14% drop witnessed during the 2013 Fed tapering episode, the 21% drop in the 2004...