Asia-Pacific Portfolio Strategy: Asian equity market daily update

The MXAPJ Index rose 0.6% today. Korea and Taiwan markets outperformed, while Philippines and Thailand markets underperformed. Malaysia markets were closed today. Within MXAPJ sectors, Info Tech and Materials led while Comm Serv and Cons Disc lagged. MSCI Japan also rose 0.6% today. The MXAPJ index has gained 20.2% YTD after gaining 27% in 2025, particularly led by Korea and Taiwan markets while dragged down by Indonesia, India, and China. Sectorally, Info Tech and Industrials are leaders in 2026. Valuations show MXAPJ forward 12m P/E at 10.3x (-2.6 s.d.) and an equity/bond yield gap of around 471bp (0.1 s.d.), indicating mid-cycle equity valuations relative to bonds;