Asia ex-Japan is one of the more exciting regions to be investing in ahead of returns that will keep...
Asia ex-Japan is one of the more exciting regions to be investing in ahead of returns that will keep on rising, says Credit Suisse Asset Management in a new note from its Orient Fund manager Peter Sartori.
Rising dividend payments, increasing amounts of long-term money being diverted to the region, increasing stock market liquidity and strength in the face of deflationary pressures are all reasons why CSAM believes in Asian investments.
Technology, consumer and materials sectors will perform best, along with some stocks in the financial sector.
Korea, Taiwan and Hong Kong are expected to lead the recovery.
Valuations remain impressive compared to Europe and the US, with price/earnings ratios still close to historical lows.
The region now yields a dividend of more than 3%, which in many cases is far better than what is paid out on bank deposits, encouraging more cash savings into equities.
Having already bounced higher than the recovery in US and European markets, Peter Sartori says he expects the relative outperformance to continue.
"The healthy fundamentals give us confidence that the recent gains are sustainable and better times are ahead for the asset class.
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