Asian Shares in a World of Deleveraging - Feb 2009
Asian equities are likely to be outperformers over the next five to ten years, reflecting reasonable valuations, the lack of debt in Asian economies, stronger financial systems compared to the US and relatively favourable demographics.
Asian equities have fallen sharply on the back of the global financial crisis, reflecting the vulnerability of Asia’s export markets, the exit of foreign capital and the impact of earlier monetary tightening.
The slump in Asian export markets is clearly a negative and will cut sharply into Asian growth rates this year.
