Wed, Sep 16, 2009 - Page 12 News List

Fidelity says Asia good for investment

By Joyce Huang  /  STAFF REPORTER

Boosted by fiscal stimulus measures, China and neighboring countries including South Korea and Taiwan present long-term opportunities for fund investors, Fidelity International told a media briefing yesterday.

China and its neighbors will lead the region’s upcoming economic recovery, said Catherine Yeung, associate investment director of Fidelity International in Asia Pacific.

An estimated population of 3.8 billion people in the region is expected to benefit from Asian governments’ increased spending, pumped into infrastructure and public works to either create job opportunities or spur consumption, she said.

Citing Thomson Financial’s forecasts, economies of developing countries in Asia will grow 6 percent on average next year, twice the projected GDP growth for Western counterparts, the company said in a press statement.

In Taiwan, improving relations with China have provided a boost to its country rating although the nation’s exports to GDP performance still raises concerns, Yeung said.

By sector, financial, IT and consumer discretionary industries are over-weighted in the asset management company’s US$4.3 billion South East Asia Fund, Yeung quoted the fund’s manager Allan Liu (廖恩樹) as saying.

Two local firms, Taiwan Semiconductor Manufacturing Co (台積電) and Taiwan Fertilizer (台肥), are among the South East Asia Fund’s top 10 largest holdings.

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