GLOBAL - Investment in Asia is looking more and more favourable with various factors, including low interest rates and improving standards of corporate governance and shareholder value, making for a positive outlook well into 2002, according to Baring Asset Management (BAM).
Many investors lost out when the tiger economies fell in the mid-1990s but BAM said various micro and macro changes over the past few years mean that investment in Asia should be viewed differently.
Khiem Do, head of Asian equities at BAM, said: “As part of the fundamentally attractive emerging asset class, which is benefiting from the current combination of economic growth and falling cost of capital, the long term outlook for Asia is positive, especially if the global recovery is steady, inflation remains low and focused macro economic management remains in place.”
According to Kate Munday, head of emerging markets at BAM, Korea is set to build on an impressive performance last year.
Noting a marked reduction in Korea’s vulnerability to external shocks over the medium term and the improvement in the country’s external debt level and financing profile, ratings agency Moody’s Investor Service raised Korea’s external debt rating by two notches to A3.
Korea now makes up more than 20% of the MSCI World emerging markets index.
By Luke Clancy
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