The hunt for attractive yields has made investors from South Korea enter the commercial real estate markets in Central and Eastern Europe.
In a frank debate with other former heads of state – Nicolas Sarkozy and Gerhard Schroeder – Italy’s Matteo Renzi said China trumps Europe for speed of investment decision-making.
Allocations to continental European equities are heavily down, despite encouraging economic news and fund managers saying in a key survey in April that they find the region appealing.
With political risk easing, economic growth accelerating and valuations stretched elsewhere, Europe is drawing Asian investors again. But is it a wholesale revival or a tactical shift?
Political risks continue to fuel Asian aversion to eurozone bonds, especially on the periphery, but some interest is returning. These investors should be wary of possible ECB tapering.
Most believe victory for National Front leader Marine Le Pen in the French election would have a sharp negative impact on Asian assets. But some take a rather different view.