HSBC survey: Emerging markets equities including Asia attractive

KUALA LUMPUR: Emerging markets equities including Asia equities
continue to be attractive due to better fundamentals, according to
HSBC's latest fund managers' survey.
HSBC's regional head of
wealth development, Asia Pacific, Vineet Vohra said on Thursday global
fund managers generally remained optimistic about the prospects of
equities.
However, he noted while emerging markets equities
including those of Asia were attractive, some managers had turned
cautious on renewed concerns about the Eurozone debt crisis.
The
survey showed 57% of global fund managers compared with 75% in Q1, 2013
covered in the survey continued to favour equities in the second quarter
of 2013 with no one holding underweight views towards this asset class.
On emerging markets equities in 2Q13, 57% of fund managers held positive views, compared to only 29% in the previous quarter.
"Preference
for North America equities dropped from 75% to 57% while Asia Pacific
ex Japan equities are favoured by 50% of fund managers, up from 43%.
"No
fund manager is underweight on Greater China, Emerging markets and Asia
equities, while 14% are underweight on North America equities (versus
25% in Q1, 2013)," it said.
As for bonds, Asian local currency
bonds (75%) stood out due to the region's stronger fundamentals and
potential currency appreciation.
With the US dollar under
pressure from the US Federal reserve's continued support for
quantitative easing, four in five fund managers were underweight US
dollar bonds and none of them held an overweight view towards this asset
class.