Full of Eastern promise

As Western markets were caught in the grip of sub-prime fears, Asian equity markets came to the fore, producing stellar returns. However, going forward it will be domestically focused companies that will truly weather the slowing global economy

Asia Pacific ex Japan equity markets produced some stellar returns in 2007. This was particularly impressive given that most Western markets were gripped with fears that the sub-prime turmoil would soon infect other areas of their economies. Events, especially in China, buoyed overall sentiment in the region and drove share prices ever higher. Returns were particularly strong in China and Hong Kong, which hit successive highs amid expectations that Beijing would continue to loosen its capital account controls. While the structural case for investing in the region remains compelling for in...