Asia Equities Are on a Wobbling Foundation as Earnings Outlook Dims
- Asia equity analysts have cut earnings estimates by 5.4%
- Trade tensions have been exacerbating profit pinch: SocGen
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The pillars of Asia’s stock markets are shaking: Sentiment is fragile, valuations are not all that cheap and earnings forecasts continue to decline.
The MSCI Asia Pacific Index’s estimated 12-month forward earnings per share dropped to a 19-month low at the end of May. Analysts covering these companies have cut profit estimates by 5.4% this year. Compare that with their counterparts in the U.S., who revised their forecasts for S&P 500 Index stocks up by 2.5%, according to Bloomberg data.