Of the two hottest Asian markets, strategists are more bullish about South Korea than Taiwan.
As for Taiwan, Moe raised his rating on the country’s stocks to Outperform, and his 51,000 target for the Taiwan Stock Exchange Capitalization Weighted Stock Index, or TAIEX, implies almost 10% upside. At first glance, Taiwan doesn’t look that cheap at 22 times earnings. But when accounting for growth, it is the second cheapest market in the region after South Korea with a price/earnings-to-growth ratio of 0.7%, Moe notes.
