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From Komfie Manalo, Opalesque Asia: The South Korean branch of Mirae Asset said on Monday (16-Feb) that the Asian consumer sector was expected to deliver stronger returns over the next ten years than in the past decade. This represents an attractive buying opportunity for 2009. From being the factory of the world, Asia is reinventing itself as a consumer, said Marco Giubin, senior portfolio manager of Mirae Asset’s Asia Pacific Consumer Fund.
According to Mirae Asset, as the global economy continues to decline this year, the earnings outlook for Asia’s consumer companies will demonstrate much greater resilience compared to other more export-oriented sectors.
The asset management company believes that the discretionary consumer sector will perform more strongly in 2009 than in the previous year. Also, many firms in the region have net cash equal to half or more of their market capitalization.
Giubin cited the sportswear sector in China, which is still seeing double digit growth in forward orders covering the first half of 2009. And the Chinese government is forecasted to announce a fresh fiscal stimulus package that will be more directed at the consumer.
He added that Asian consumers enjoy high household savings rates which could lead to more significant consumer spending.
Giubin said “The fundamentals of domestic demand within the Asia Pacific region remain strong and investing in a fund that provides ...................... To view our full article Click here
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