Valuations reasonable despite downturn fears

Schroders may reduce its weighting in Australia in the coming weeks as expectations of a recovery in global growth mean more growth-orientated Pacific markets are likely to outperform in 2003. On the sector as a whole, fund manager at the group Leong wah Kheong says: 'Despite being prone to concerns about a slowing global economy, the market seems to have factored in such fears and valuations are generally reasonable. We remain positive on the region. 'Share prices are already factoring in any possible future earnings downgrades, and domestic demand in many of the regional economies...