Morgan Stanley-Asia EM Equity Strategy Early year trends - Japan is outper...-106062616

MJanuary21,202409:00PMGMTIdeaAsiaEMEquityStrategyAsiaPacificMorganStanleyAsia(Singapore)Pte.++656834-8172Earlyyeartrends-JapanisJonathanFGarneroutperformingEquityStrategistJapanhascontinueditsbullrunatthestartof2024,whileEMJonathan.Garner@morganstanley.comandChinaarelaggingmeaningfully.AtthestocklevelinEM,outperformersareclusteredinIndiaandSaudiArabiawhilstMorganStanleyAsiaLimited++8522848-8845withintheJapanmarket,IndustrialshavebeenoutperformingITearlyon.JasonNg,CFAKeyTakeawaysQuantitativeStrategistJason.Dl.Ng@morganstanley.comWecontinuetopreferJapan&IndiaversusoverallEMandChinathisyearandreiterateourthemeofaNewErainAsia/EMequities.MorganStanleyAsia(Singapore)Pte.++656834-6597+656834-6949ThereissomewhatofapositivecorrelationhistoricallyforJapanequitiesDanielKBlake+8522848-7102betweenearlyyearpositiveperformanceandfullyearperformance.EquityStrategistJapanhasmadeastrongstartto2024withTOPIXgaining+5.3%YTD(inJPYDaniel.Blake@morganstanley.comtermsor+0.2%inUS$)asof18thJanuary.StrongnominalGDPgrowthandpositiveearningsrevisionsaswellasastructuraltrendtorisingROEhavebeenKristalJidrivingtheoutperformanceversusRoW-seeourrecentmajornoteonJapan-JapanSecularBullMarketArrives:HereisHowtoPlayIt.JapanremainsakeyOWmarketEquityStrategistattheglobalequitylevelwithaTOPIXbase-casetargetpriceof2600(+4%upside)Kristal.Ji@morganstanl...