Invesco Perpetual's Parks: Asia expectations are running ahead of reality

Stuart Parks, head of Asian equities at Invesco Perpetual, explains why despite China's strong equity market gains in recent months, investors may be too optimistic on other Asian countries

Over the last six months or so, we have seen a marked improvement in the performance of Asian equity markets, largely due to developments in China. Despite falling economic growth expectations, Chinese equity markets have made strong gains, mainly due to monetary policy easing, targeted stimulus measures and progress on government reform. Monetary easing and economic reform can be seen in a number of other countries, although expectations in India, for example, may have risen too fast. But is this improvement in relative performance sustainable?  Stimulating growth In China, a lack...