Manulife Asset Management Says Emerging Markets In Asia Offer Opportunities

KUALA LUMPUR, Dec 16 (Bernama) -- Emerging markets in Asia are expected to continue to grow in 2017, offering opportunities for investors amid ongoing global political and market volatility, said Manulife Asset Management. It said the Asian market presents opportunities to those willing to diversify across asset classes and geographies, as long-term interest rates in advanced economies are expected to remain low in the year ahead. "While Asian stock earnings were soft in recent years, earnings are expected to be revised upward in the coming year, as a result of an improved economic environment, as well as supportive fiscal and monetary policies. "More broadly, when compared to 2016, capital flows, exchange rates and bond spreads across most regions, are expected to continue to stabilise in 2017, creating a more positive macro environment for equities," it said in a statement Thursday. Manulife Asset Management said real interest rates in Asia, which constitute the improving inflation outlook, are increasingly more favourable, indicating a lower vulnerability for Asian stocks to future interest rate increases from the US Federal Reserve. Meanwhile, it said Asian economic fundamentals are expected to remain stronger than other emerging markets in the year ahead. "Over the past ten years, a rating upgrade trend was seen for most Asian countries, enabling them to achieve investment grade status. "Countries in the region also enjoy stable economic growth, stronger balance sheets, and a better macroeconomic position than in previous years," the asset management company said. -- BERNAMA