Oliver’s Insights: China – soft landing, slow easing, shares cheap

China’s growth rate has slowed to 8.1%…given monetary easing it is likely to stabilise at around 8% this year, consistent with a soft landing. Chinese economic data for March contained something for everyone. The bears could point to the weaker than expected GDP growth rate, the slowdown in property sales and dwelling starts and the... Read more continue reading

The Asian G7 & the pursuit of luxury


Economic power is shifting from the old Group of Seven nations (Canada, France, Germany, Italy, Japan, UK and the US) to the new Asian G7 (China, Hong Kong, India, Korea, Malaysia, Singapore and Taiwan.) Meanwhile, the luxury index hits record highs: A sharemarket index of luxury good companies hit record highs in mid-March before since... Read more continue reading

Asia’s stock surge approaches 30% – a bull market?


The rally in Asia stocks from their lows last October has gone well beyond the level that some define as a bull-market rally – a surge greater than 20%. For at the end of February, the surge was just under 30%. Global and local factors lie behind the 29.6% in the MSCI Asia ex-Japan Index... Read more continue reading

Could ASEAN stocks outperform for a fifth year in 2012?


ASEAN economies are expected to grow between 3% and 5% this year – will their sharemarkets echo this? Many of Asia’s biggest stock markets had a poor 2011. That helped to make the steady performance of the four emerging ASEAN countries in the MSCI Asia ex-Japan Index even more remarkable. Stock benchmarks in the Philippines,... Read more continue reading

What’s next for Indian equities?


Indian equities disappointed investors in 2011 with one of the worst performances among emerging markets. The combination of a slowing global environment and slowdown in India’s domestic economic activity led to a 24% fall in the MSCI India Index in rupee terms, with foreign investors further hindered by a depreciation in the rupee. What’s ahead... Read more continue reading

2012 outlook for China in the ‘year of the dragon’


The China investment team at Fidelity Worldwide Investment is optimistic about Chinese equities in the new Chinese year. While the Chinese economy is expected to slow to around 8% in 2012, the fast growing and increasingly affluent middle class and continuing government support will continue to support domestic economic activity. Martha Wang, Portfolio Manager of... Read more continue reading

Enter the (year of) the dragon!


Will Asian economic growth translate to growth in equity prices in the Chinese New Year of the dragon? “We think it will,” says David Urquhart, Portfolio Manager for the Fidelity Asia Fund. “The Organization for Economic Co-operation (OECD) forecasts the Asian region to grow around 7% in 2012. According to the Chinese zodiac, 2012 is... Read more continue reading