Asian value stocks are posting their strongest outperformance over growth in more than three years, with the MSCI Asia Pacific value index climbing roughly 6% this quarter while its growth counterpart slipped about 2%. Semiconductor giants suffered sharp declines, with SK Hynix plummeting 14.7% in a single session in late July and Samsung Electronics dropping 13.4% the same day, the tech sector accounting for roughly a third of the regional index. Meanwhile, Asian financials surged 12%, with value stocks trading at 10.8 times one-year forward earnings compared to 17.9 times for US equities. This rotation could accelerate if financial companies continue delivering steady results while chipmakers guide lower on AI-related revenue expectations, according to fund manager Hao Hong.
Source: Read the original article
