Talking Point  

Advisers back Asia equities for good portfolio diversification

Advisers back Asia equities for good portfolio diversification
(credit: AP Photo/Mark Schiefelbein via Fotoware)

Advisers believe that investing in Asia is a good way to achieve diversification in a portfolio, according to the latest FTAdviser poll.

The poll asked advisers: Do you agree or disagree with the following statement? Amid the current market turbulence, investing in Asia can act as a suitable diversifier for an investment portfolio.

The majority of advisers (90.9 per cent) agreed with the statement.

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According to Mike Shiao, Chief Investment Officer, Asia ex Japan, Invesco, the unique economic dynamics of the region as well as the attractive valuations of Asia ex-Japan equities can provide global investors with good opportunities for diversification.

This is because the reopening of China can benefit the country’s domestic market and be an extra driver for Asia’s overall growth. 

A rebound in China’s pent-up domestic demand is also expected to result in a strong boom in trade, exports, and growth in neighboring Asian countries.

Meanwhile, other regions such as India, Taiwan and Korea have strong growth prospects.

India is one of the fasted growing economies.

And despite the cyclical slowdown of the tech sector is a short-term phenomenon which Shiao says is a short-term phenomenon, both Taiwan and Korea’s economies remain very competitive in the technology sector.