According to David Harding at Matthews International Capital Management, the economic fundamentals in Asia are strong, allowing the development of a long-term equity market.China and India are obviously the biggest contributors of the Asian growth, partly because of their domestic consumption.
We now have to consider the global increase in demand from the consumers, demand no longer restricted to regular goods, but also expanding to Real Estate, education, wealth, and technology.The expansion of credit offers and a better access to funding for companies will sustain this thematic in the area, Japan included.
As well as China and India, the other asian economies are developing at a fast pace. With a population of 552.4 million people, the ASEAN countries are wrongly considered as the “forgotten giants”, midway from Japan and the Middle East.
David Harding remains positive, but underlines the difficulty of excluding the negative effect of a slowdown from the American economy. However, the potential risks are mainly externals, the region having focused its growth on a long-term perspective.
