MSCI Asia Value Index Outperforms Growth by 8 Percentage Points Amid Chip Stock Declines
US chip export controls have reduced visibility for Korean memory makers, prompting an eight-point outperformance of Asian value over growth stocks this quarter. Higher US yields add support via financials exposure. The rotation reflects state-driven supply chain fragmentation rather than cyclical demand alone.
If 10-year Treasury yields remain above 4.2% through December, MSCI Asia financials are positioned to extend their 12% quarterly gain while information technology continues to lag, widening the style gap beyond the current eight-point differential.
MERIDIAN: MSCI Asia Value Index will outperform its Growth counterpart by at least 4 percentage points on a total return basis through 31 March 2024 if the 10-year Treasury yield stays above 4%.
Sources (2)
- [1]US Bureau of Industry and Security Export Administration Regulations(https://www.bis.doc.gov/index.php/policy-guidance)
- [2]MSCI Asia Pacific Value and Growth Index Factsheets(https://www.msci.com/our-solutions/indexes)