The key factors needed to power an Asia recovery

ON ASIA EX JAPAN

Asian economies have many attractive features to investors, such as strong growth rates, generally youthful demographics, and high company profitability.

However, despite their attractive fundamental prospects, the progress of Asian economies is still highly dependent on the US economy, and consequently making an investment case for Asia depends largely on your time horizon. Countries in Asia have been significant beneficiaries of successive rounds of quantitative easing (QE)pursued since the financial crisis by Western central banks. This has manifested largely via the ‘carry trade’, whereby investors borrow low-yielding currencies such as the dollar to fund the purchase of higher yielding emerging market bonds, particularly those in ...