Investors favour China and Japan, exit Indonesia

Investors’ allocations to equities have risen to their second highest level in 13 years, with China and Japan gaining favour at the expense of the eurozone, according to Bank of America Merrill Lynch’s (BoA-Merrill) July fund manager survey*. But overall exposure to emerging market equities is unchanged month-on-month and remains far below the long-term historical average, despite the segment being seen as the most undervalued in 13 years. (This view was supported by a Northern Tr…