Asian equity markets, especially Hong Kong and China, are topping the favored investment list of ratings agency Standard & Poor's as a better economic outlook points to stronger corporate bottom lines, an equities analyst said yesterday.
"This year, we'll pay attention mostly to Asian markets. The Hong Kong and Chinese markets are our favorites," said Christopher Lee (
The Asian market, among the three major equity markets in the world, is expected to have the highest growth at 12 percent this year, compared to 8 percent for the US and 9 percent for Europe, according to the firm's Asia 50 Index.
lagging market
Taiwan's tech-heavy stock market is not on Lee's list as the local bourse's performance last year lagged behind most emerging markets.
Political jitters have curbed the rise of local stocks after the strong financial results of last year.
"Besides, we don't expect high-tech firms to have strong expansion" in the future, Lee said.
Standard & Poor's currently track five Taiwanese high-tech companies, including top chipmaker Taiwan Semiconductor Manufacturing Co (
"We prefer Hong Kong particularly as its economy should have fully revived last year. This year, corporate bottom lines are expected to improve further because of stronger consumer spending," Lee said.
rebound
The ongoing rebound in Hong Kong's property sector follows the 1997 bubble, and the growing number of Chinese tourists to the former British colony will boost consumer confidence and result in more spending there, he said.
Consumer-related and financial stocks would be good selections, Lee said. Hong Kong's annual economic growth hit a four-year high at 8.1 percent last year.
Chinese firms are also expected to have better earnings prospects this year and next year.
awards
Meanwhile, Standard & Poor's and the Chinese-language Smart Magazine (
Franklin Templeton Investments (富蘭克林坦博頓集團) was the biggest winner yesterday, walking away with six prizes with funds such as the Templeton Developing Markets Trust Fund with a three-year return of 76.91 percent.
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