Asia: onwards and upwards

ASIA

Asian exposure should be part of any global asset allocation portfolio and convertibles enable a balanced and efficient exposure to the region

The remarkable rise of Asia as an economic powerhouse over the past decade looks set to continue. While the region does face challenges in rebalancing its economic model away from being purely reliant upon Western demand, top-down fundamentals leave Asian economies well-placed to take advantage of forthcoming shifts in the dynamics of the global economy. Through the global recession, Asian economies did not experience the permanent destruction of potential output that has seemingly been the case in the US and the EU, which in turn has accelerated capacity shifts from the West to the East...