Asian equities approaching fair value

Sector rotation has been the key driver of recent market movement in Asian markets, as investors begin to take profit in some of the cyclical names that had performed strongly in previous months, according to Tahnoon Pasha, Hong Kong-based head of equities at MFC Global Investment Management. Economic indicators continue to be favourable, he says, and liquidity conditions continue to be supportive of Asian equity markets. In January this year, MFC Global strengthened its Asian equities team, reflecting the growing importance of the region to the fund house.