Manulife shares drop nearly 6% after Q1 2026 earnings despite strong Asia growth

Manulife's stock fell almost 6% following its Q1 2026 earnings report, primarily due to a single line item. However, its core earnings in Asia grew by 22% and new business value (NBV) increased by 15%, showing strong regional performance. Valuation models suggest the stock is fairly valued or undervalued when adjusted for certain accounting items. The main risk is whether recent retail mutual fund outflows in Q1 will continue, potentially leaving Asia as the main growth driver for the company.