Bestinvest managing director of business development & communications Jason Hollands says that in the near term he is “very cautious” on emerging Asia. He says: “We’re in the midst of a very painful re-pricing of risk around the globe primarily as a result of tapering, but also due to Chinese monetary tightening.”
He says that US Treasuries being driven higher is “particularly traumatic for Asia, as the region has seen significant debt issues since 2008, but the cost of capital is now rising significantly.”
Lowes Financial Management investment analyst Paul Milburn says: “From an economic growth perspective investing in emerging Asian equities certainly appears compelling. The most recent data from the IMF projects that emerging Asian countries, as a whole, will enjoy GDP growth of 6.7 per cent this year, an improvement from 6.5 per cent in 2013. This compares favourably to advanced economies, where GDP is expected to increase from 1.3 per cent in 2013 to 2.2 per cent in 2014.”
Joanne Ellul is a freelance journalist
