Asia Pac Quantessential Style: Dramatic and persistent rotation

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Asia Pac Quantessential Style: Dramatic and persistent rotation

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Asia Pac Quantessential Style

Dramatic and persistent rotation

Significant and persist rotation within styles 13 May 2026

While many investors focus on the rotation between Value and Growth or Large and Quant Strategy

Small, a significant opportunity for investors in Asia this year has been dramatic rotation Asia Pacific

within styles. Year-to-date, Cyclical Growth has outperformed Stable Growth by 15.1%,

Cyclical Yield has outperformed Defensive Yield by 18.2%, and Cyclical Quality has

outperformed Defensive Quality by 22.7%. Each of these rotations has a positive

correlation with the global earnings cycle over multiple decades, so the strengthening

global earnings environment currently suggests this rotation within styles could persist. Nigel Tupper >> Quant Strategist

Merrill Lynch (Australia)

Asia Quality Growth has outperformed by 35.6% YTD +61nigel.tupper@bofa.com2 9226 5735

The best performing style in Asia this year has been Quality Growth, outperforming the Amar Vashi >>

MSCI APxJ Index by 35.6% in four months. This screen combines Quality (earnings Quant Strategist

stability, ROE) and Growth (earnings growth, earnings revisions) to identify stocks with Merrillamar.vashi@bofa.comLynch (Australia)

both style tilts. The Quality Growth screen is currently dominated by stocks from China Sumuhan Shanmugalingam >>

Materials, China Tech, Korea Industrials, and Taiwan Tech. Quant Strategist

April: Momentum and Risk best, Value worst sumuhan.shanmugalingam@bofa.com

After the Middle East ceasefire, the best performing Asia styles in April were

Momentum, Risk, and Growth, while Value underperformed. During the month, the Unless otherwise noted all links on