Asia Stocks Hurt as Profit Forecasts at 12-Year Low Versus World
- China’s growth slowdown, supply disruptions weigh on outlook
- Asia’s earnings estimates seen getting worse before improving
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Analyst estimates for Asia’s corporate profits have fallen to more than a decade low relative to global peers, and further downgrades are on the horizon as China’s economic growth slows and global supply constraints remain.
After soaring past pre-pandemic levels on vaccine and reopening optimism, the 12-month forward earnings-per-share forecasts for MSCI Asia Pacific Index members began to drop in mid-September, led by cuts in Australia, South Korea and some Southeast Asian countries such as Malaysia, according to data compiled by Bloomberg.