HSBC survey: Emerging markets equities including Asia attractive

  • Business
  • Thursday, 25 Apr 2013

KUALA LUMPUR: Emerging markets equities including Asia equities continue to be attractive due to better fundamentals, according to HSBC's latest fund managers' survey.

HSBC's regional head of wealth development, Asia Pacific, Vineet Vohra said on Thursday global fund managers generally remained optimistic about the prospects of equities.

However, he noted while emerging markets equities including those of Asia were attractive, some managers had turned cautious on renewed concerns about the Eurozone debt crisis.

The survey showed 57% of global fund managers compared with 75% in Q1, 2013 covered in the survey continued to favour equities in the second quarter of 2013 with no one holding underweight views towards this asset class.

On emerging markets equities in 2Q13, 57% of fund managers held positive views, compared to only 29% in the previous quarter.

"Preference for North America equities dropped from 75% to 57% while Asia Pacific ex Japan equities are favoured by 50% of fund managers, up from 43%.

"No fund manager is underweight on Greater China, Emerging markets and Asia equities, while 14% are underweight on North America equities (versus 25% in Q1, 2013)," it said.

As for bonds, Asian local currency bonds (75%) stood out due to the region's stronger fundamentals and potential currency appreciation.

With the US dollar under pressure from the US Federal reserve's continued support for quantitative easing, four in five fund managers were underweight US dollar bonds and none of them held an overweight view towards this asset class.

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