Multiple macro fears are driving risk aversion among investors globally, but earnings growth and valuations cast Asian equities in a favourable light, says CIO John Ford.
Uncertainty continues to dog global investor sentiment amid fears about the European sovereign debt crisis, weakness in the US economy and political developments in the Middle East. An escalation in any of them could have grave consequences for financial markets worldwide.
These factors combined are driving fresh risk aversion. Even in Asia-Pacific, the performance of equity markets has failed to match that of the region’s economies, which have been barrelling along by comparison with Western counterparts.
The direction of China’s monetary policy will determine whether the nation’s economy experiences a hard or soft landing and holds the key for Asian markets this year and beyond.
AsianInvestor sat down in a video interview with John Ford, chief investment officer for Asia-Pacific at Fidelity International, to run through some of the most vexing issues.
To listen to the five-minute edited interview, please click below.
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