Dresdner RCM Global Investors is predicting that Asian markets are set for recovery within the next three years.
The fund management firm believes that Korea, Taiwan and Hong Kong will lead the Asian markets in future growth.
Dresdner's Oriental assets fund manager Stuart Winchester says strong companies are now emerging in the area after a number of turbulent economic years.
Winchester says consumer spending is picking up in these regions, along with real estate markets. He believes that liquidity conditions are also improving, particularly in South Korea and Thailand.
South Korea could recover in as little as one year, with Taiwan and Hong Kong expected to pick up in the next two to three years.
Winchester believes that one of the stocks likely to be driving the recovery will be Samsung Electronics.
He says the turbulent economic conditions over the past few years have been demanding on many companies but that those which have survived and are well run are now poised for growth.
He also feels that China is well placed to prosper as the country benefits from increasing foreign capital investment.
Winchester says: “Asian markets should be approached with caution but there will be growth opportunities for those who want to diversify their portfolios.
“The markets are currently receiving more attention from international investors, so the outlook for fund flows remains positive. The growth levels, however, will not be as strong as we have seen in the past. Rather, a slow and steady rise is on the cards.”