Asia ex-Japan equities poised for correction

Markus Rosgen, chief Asia strategist at Citi, expects the MSCI Barra Asia ex-Japan index to fall 20-25% in the coming year, bringing regional valuations back to their fair value. He sees this as a correction in a secular bull market, however, and not the end of the Asian growth story.Asia has plenty of growth and exciting prospects, but price/earnings, price/book value, and earnings growth valuations all show that the risks are to the downside, Rosgen says.ôOur problem is the price of…