Korean and Asiana, Cathay and others are undervalued due to MERS – Thai authorities do not have a leg to stand on and CALC shares still falling.

MERS is causing the usual pandemic fear share sell-off across the APAC region with airlines taking a sizable hit. MERS has been spreading across the Middle East for a very long time now, going mostly un-recorded and unreported, but the recent cases in Taiwan and South Korea show in vivid detail how quickly this virus can spread if authorities do not have their wits about them, as was the case in Taiwan. Now analysts believe the APAC airline share sell-off to be way over done and as such they are moving many airlines to Outperform. Timothy Ross and Christopher Siow