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Hugh Young warns of eurozone risk to Asia in 2012
Asian markets could suffer in 2012 if the eurozone debt crisis worsens, Aberdeen Asset Management’s Asian equity star Hugh Young has warned.
“Greece alone would not send shockwaves as most people have written it off. The dissolution of the euro is another matter,” he said.
Mr Young said he believed that the case for Asian equities remained strong in spite of potential risks from the ongoing eurozone sovereign debt crisis this year.
“I think I’d prefer my money in solid Asian companies yielding three to four per cent, than lending my money at two per cent to bankrupt western governments,” he said.
The manager said that Asian markets were trading at valuations of 11-12x forward earnings projections - cheap levels.
“Growth is slowing here, but still very respectable in a global context,” he added.
