The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.


All material subject to strictly enforced copyright laws. © 2022 Euromoney, a part of the Euromoney Institutional Investor PLC.
CAPITAL MARKETS

Optimism reigns in the Asian stock markets

Asia... start your engines.

Asia’s stock markets have already got off to a flying start in 2007. Although most investor attention seems to be focused on mainland China and Vietnam, where analysts are beginning to sound cautious on valuations, other exchanges have also performed strongly.

There appears to be mounting evidence to support higher valuations for most Asian markets, according to Lehman Brothers’ senior economist in Asia, Rob Subbaraman. “We believe conditions are set for Asia ex-Japan to become new engines of growth,” he says. “Forecast lower oil prices this year will act like a shot in the arm for current account surpluses in the region.”

Although Subbaraman cautions that the region is still heavily trade-oriented – Lehman calculates that some two-thirds of Asian trade ends up outside the region – Subbaraman notes that governments’ healthy financial books in the region provide plenty of firepower to stimulate economies if necessary. Public debt in Asia ex-Japan is already below the OECD average, save in India and the Philippines. Even there, government debt levels, although high, have been falling of late.

Labour markets in the region are tightening, say Lehman analysts, with unemployment of about 3.6%. That is likely to lead to increasing income levels and, with it, rising consumer demand within Asian economies.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.

SUBSCRIBE ONLINE TODAY

Unlimited access to Euromoney.com and Asiamoney.com

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually

FREE 7 DAY TRIAL

Unlimited access to Euromoney.com and Asiamoney.com, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors

LOGIN NOW

Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree