Asia

Stock markets across Asia have rebounded strongly in 2009, outperforming the developed world, and the prospects continue to look encouraging.

While the rest of the developed world benefited from significant amounts of liquidity injected via Quantitative Easing (QE) programmes, Japan had a comparatively tight fiscal policy.

Twelve months ago, in the aftermath of the collapse of Lehman Brothers, it looked as though the liquidity crunch could bring down the world's financial system.

Aberdeen Asset Management's Hugh Young continues to be heavily underweight Japan, despite the country enjoying its fastest period of growth for over two years.

First State has introduced a new income share class to its £3.03bn Asia Pacific Leaders and £767m Asia Pacific funds.

Sector's stocks continue to underperform developed market peers, though top-decile managers find returns with focus shift

US and European equity indices reached new highs for 2009 throughout October, yet the Topix is moving at a level far below the high of 987.27 it posted on 31 August. What will it take for Japanese equity to catch up?

Neptune's Chris Taylor has cut financials exposure in his Japan Opportunities fund by more than half in recent months on expectations bank earnings could be hampered by Government reforms.

Smith & Williamson has launched an Asia ex-Japan fund for manager Jane Andrews.