An Asian economic recovery is imminent according to Dresdner RCM's Oriental Assets Fund manager Stuart Winchester.
He says following a turbulent period of corporate restructuring throughout Asia, there are signs of a gradual recovery in the region.
Winchester points to South Korea, Thailand and Malaysia as being best placed to perform well with Taiwan and Hong Kong still facing some structural problems.
Winchester says: “There are a number of pointers that clearly indicate an Asian recovery. Consumer spending is picking up and most economies are running balance of payments surpluses, reflecting a domestic economic recovery. In addition, liquidity conditions are improving in these countries, particularly in Korea and Thailand.”
“I am confident about recovery in many Asian markets. Obviously a return to trend rate of growth in Japan and the US is beneficial to Asia. The falling dollar and albeit limited recovery in export growth in the first quarter this year, has allowed Asian governments to countenance a continued pick up in their domestic economies.”