Taiwan favoured despite problems

We view the recent weakness in emerging markets as an interim correction and anticipate stronger performance later this year. Given robust OECD economic growth, we are overweight East Asia. These countries have the greatest exposure to world trade and will benefit from the trend towards outsourcing. The wider macro picture for the Asia region is healthy. Currencies are stable, GDP growth and exports are strong and current accounts are in surplus. The Korean market has continued to slide on concerns over the Investment Trust Companies and the future of the Hyundai Group. Strong exports an...