Hugh Young: I am finding it hard to be optimistic

ON ASIA

Hugh Young, manager of the Aberdeen New Dawn investment trust, explains why an uncertain outlook for corporate earnings means he is maintaining a cautious stance on Asian equities.

Asian equities experienced a more muted start to the year when compared to other asset classes around the globe. However, a slight pullback in Asian equities was expected after strong gains were made in 2012. Aggregate growth figures in Asia remain high, but from an economic point of view the slowdown continues.  Recent quarter on quarter GDP figures from China and Singapore were down and support the dwindling optimism for growth in the region. Fortunately, Asian finances are healthy and we expect governments to continue to invest in human capital and increase the level of expenditure...