Asia Pac Quantessential Style: Reverse reversal

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Asia Pac Quantessential Style: Reverse reversal

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Asia Pac Quantessential Style

Reverse reversal

Asia: Style reversal could reverse 21 July 2026

As the MSCI Asia Pac ex-Japan Index fell -5.3% in the first three weeks of July, there was Quant Strategy

meaningful style rotation. In Asia, Momentum is the best performing style this year Asia Pacific

(outperforming by 16.1%) but has been the worst in the first three weeks of July (-5.5%).

In contrast, Value was the worst performing style in 1H (-3.8%) but has been the best

performer in July so far (+1.5%). Much of this style rotation is tied to the recent pullback

in Semiconductor stocks in Asia. History suggests previous pullbacks in Semis tend to

be buying opportunities unless the global economy enters a downturn. Given that our Nigel Tupper >> Quant Strategist

indicators of the global cycle remains strong, a rebound in Semis could potentially drive Merrill Lynch (Australia)

a reversal of the recent style rotation in Asia. +61nigel.tupper@bofa.com2 9226 5735

Asia Quality Growth rallied 60.4% in 1H AmarQuant VashiStrategist>>

Quality Growth rallied 60.4% in the first half of 2026. This screen combines Quality Merrillamar.vashi@bofa.comLynch (Australia)

(earnings stability, ROE) and Growth (earnings growth, earnings revisions) to identify Sumuhan Shanmugalingam >>

stocks with both style tilts. The Quality Growth screen is currently dominated by stocks Quant Strategist

Merrill Lynch (Australia)

from China Tech, Korea Industrials, and Taiwan Semis, and Taiwan Tech Hardware. sumuhan.shanmugalingam@bofa.com

June: Cyclical Boosters underperformed

The defensive APxJ Bunkers outperformed the aggressive APxJ Boosters by 4.0% in June, Unless otherwise noted all links on

but the Boosters are leading by 15.6% YTD.