China and India investments hold promise
China and India have emerged as attractive investment destinations amid the continuing slump in equity markets, according to a new analysis issued by Russell Investments.
Russell chief investment strategist, Asia-Pacific, Andrew Pease believes sliding stock prices and ongoing concern about a prolonged global economic rout has increased the attractiveness of mainland China and India as preferred markets.
"China is the standout market in the region on valuation grounds, but has also been one of the worst performers," according to Pease's latest Asia Market Commentary.
"China is starting to attract the attention of value-oriented fund managers, and is a defensive market heading into a global slowdown," Pease said.
The analysis said despite its poor performance, Russell believed India to be a compelling market for investors considering Asia.
"The relatively attractive valuation of our Composite Value Indicator combined with the easing of inflation pressures, peaking in the tightening cycle, and India's defensive characteristics heading into a global slowdown put this market at the top of our list," Pease said.
He said the economic issues facing Asia, excluding Japan, seemed old-fashioned when compared to the US and Europe.
"Asia's problems include overheating, inflation, and policy tightening, while problems impacting the rest of the world may see less need for policy tightening across the region."
AUTHOR
Mike Taylor
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