Pruksa Iamthongthong, Senior Investment Director, Aberdeen Standard Investments
Asia Pacific ex Japan market, as represented by MSCI APXJ, had a strong first half.
Key market drivers in 2021 include:
1. Covid – the gap between developed markets and Asia is gap narrowing as we move towards the end of 2021 as vaccination pace picks up.
2. Inflation – not seeing huge signs of building core inflationary pressure in Asia. Worth noting higher core inflation in India.
3. Geopolitical competition – here to stay. A real increase in R&D spending to boost long term competitiveness by both US and China.
4. Going green – long term structural investments in the areas of clean energy such as wind and solar, as well as in electric vehicles.
6 long term investment opportunities in Asia
- Aspiration - consumption and premiumisation of consumption.
- Building Asia – infrastructure and housing
- Health and wellness – healthcare devices and contract research organisations
- Digital future – internet Companies that are driving the digital economy.
- Tech enablers – semiconductors that are building blocks that power the digital economy.
- Going green - Asia is a strong supplier into going green build out globally