Asia Dynamics

Research evidence excerpt

Asia Dynamics

Macquarie Equity Research

02 July 2026

Quantitative

AsiaAsia Dynamics

Trendspotting across the region, June 2026, V15

Kelly Richard

Key Points Kwok Lawson

• Price and earnings momentum diverged: positive EPS revisions

persisted, but returns were weighed down by multiple contraction.

• Growth-led China contrasts with Value rotation in Korea and Taiwan. RyanCroft, CFA VivianChua

• Quality weakened in Asia ex-Japan, while developed markets saw a long-

awaited rotation back into Quality. 1-mth return decomposition

Yield Earnings change

15% Multiple change Total return

Asia ex-Japan (AxJ) 10%

• Style positioning: Growth/Value and risk appetite diverged across Asia in 5%

June. China led the Growth trade, while tech-heavy markets tilted toward 0%

Value amid the AI-driven momentum unwind. Risk appetite improved in -5%

the second half, except in Korea. Meanwhile, earnings revisions continued, -10%

but returns were held back by multiple contraction, driving a wedge -15%

between earnings and price momentum. PH TW KR SG IN JP AxJ TH CN MY HK ID

• Earnings revisions ratio (ERR): Revisions remained strongest in cyclical Source: FactSet, Macquarie Quantitative Research

sectors, particularly Industrials and IT. Lower oil prices pressured Energy

and Materials but supported Consumer Staples, while Consumer Performance Heatmap (1-mth)

Discretionary gained momentum. China Financials, especially banks, L/S Return

continued to see net upgrades. (% of history) AxJ CN IN TW KR JP

• FolioIQ for regime positioning: AxJ remained tilted toward Growth over Growth 99% 99% 48% 30% 82% 97%

Value, though style conviction moderated. The momentum reversal did Value 16% 1% 13% 100% 98% 38%