A conference was recently organised by CLSA in Singapore for investors from all over the world interested in the Asia-Pacific markets. Top management of several companies in Asia made presentations to these investors.
The key takeaways for investors were:
- investors should be overweight in India, China, Hong Kong, Taiwan
- India's GDP growth will be 6.3% in 2008, 4.6% in 2009, 6.4% in 2010; China's corresponding figures will be 9%, 7% and 8%
- the huge drop in the price of oil will benefit India's fiscal position
(Read more details about this conference here.)
Regular readers of this blog may have been wondering why I've been analysing the Asian market indices like the Hang Seng, KOSPI and TSEC. It was to draw attention to the fact that the Asian economies are less dependent on borrowing and more on saving. Therefore, they would be less affected by the global downturn and take less time to recover.
The problem of toxic assets and sub-prime mortgages had little influence on Asia's banking systems. More humane labour laws have prevented large scale unemployment - particularly in India.
The stock markets assessed that and recovered quicker from the bear mauling. Technical analysis indicators are confirming that most Asian stock markets have reversed trend from bear to bull, while markets in the USA and Europe are still struggling.
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