Asian markets shine in global slowdown

In spite of heightened volatility and global concerns, Asian markets have stood up relatively well to the threat of contagion caused by the US sub-prime crisis. Corporate debt is at much lower and manageable levels, while earnings continue to be strong with higher rates of return on equity available across the region compared with 1997. Return on equity for the region is running at an average of 15%. Against a relatively strong earnings backdrop, the region trades on around 17 times 2008 earnings and the dividend yield is around 2.5%. These numbers are not as cheap as those of a few years...