Investors are increasingly optimistic about growth in the Asia ex-Japan region, with a larger proportion of fund managers than before forecasting a stronger regional economy over the next 12 months.A monthly survey by Merrill Lynch showed that the number of fund managers expecting economic expansion in China - the Asian powerhouse - to slow over the next 12 months has also reduced. A net 4% of investors polled by the investment house for its August survey expected China’s economy to weaken, compared with 20% in July.
For the broader Pacific ex-Japan region, a net 50% of the fund managers forecast a slight strengthening in the region’s economy. In July, a net 9% had said the economy would get a little weaker.
Inflation in Asia ex-Japan, as well as in China, is forecast to rise over the next year. A net 71% expect a higher consumer price index for the region, and net 51% are penciling in higher inflation in China.
The outlook for corporate profits in Pacific ex-Japan markets is upbeat, with a net 17% expecting better earnings per share growth over the next 12 months compared with a net 5% in July who expected a deterioration.
Fund managers view global emerging markets as the most favorable asset class for corporate profits, with a net 26% giving it a nod of approval. That was more than the net 22% of global investors in July who thought the asset class had the most favorable outlook for corporate profits.
More: sg.biz.yahoo.com
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India is the key to East Asia-Asia integration and should thus be a part of the Asia-Europe dialogue process but the time is not ripe for it to become a part of the Asia-Pacific Economic Cooperation (APEC), Japan's envoy here said Tuesday.
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