High savings ratios and demographics make for better long-term picture

Asia Pacific markets fell heavily in January and February on worries about a severe global slowdown,...

Asia Pacific markets fell heavily in January and February on worries about a severe global slowdown, but have rallied very strongly since with an improvement in sentiment as investors anticipated the worst of the financial crisis and recession might be over. Although the short-term outlook is uncertain, we continue to believe Asia Pacific markets will provide positive returns over the long term as there are a number of factors favouring the asset class. Long-term positives include demographics and high savings ratios. Positive demographic trends in countries such as India should contrib...