How Asian markets stack up

A look at how the Asian markets have performed this year

Most major global markets are up this year, but, there has been a huge difference in performance. Indonesia has been the best-performing market, up 17.6 per cent and 25 per cent in local currency and dollar terms, respectively, so far in 2016. Last year, it was among big losers. “Year-to-date the rally in Indonesia was driven by confluence of domestic factors and global chase for yields. Domestic factors include public sector-led growth recovery, Bank Indonesia cutting rates by 125 basis points, strengthening the rupiah on falling rate differentials, a new, more realistic finance minister, and signs of reform — including a tax amnesty and ongoing initiatives to reduce governmental red tape and boost investment,” says Morgan Stanley. India is up only six per cent and not in the five best performing major Asian markets list this year. Analysts say, both India and Indonesia are among the most overvalued markets in Asia but also offer highest earnings growth potential. Experts say India can outperform if corporate earnings growth meets expectation. Here’s how they compare.