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Alternative Market Briefing

Investors urged to keep cautious optimism over rallying emerging market leaders China and India, boosts Indonesia's consumer power

Thursday, September 17, 2009

From Christine Gaylican, Opalesque Asia:

In its latest equity market analysis report (Source), financial management firm Batterymarch Inc. has advised keen investors in the region to keep a cautious optimistic outlook for emerging market leaders China and India, but to look to Indonesia for investment opportunities.

The investment firm is not too impressed with China's manufacturing boom in the month of August, as this also scares migrant factory workers of being overworked. In India, on the other hand, a slowdown in agricultural production due to low rainfall though manufacturing production offset this particular decline.

"A sharp sell-off in China - on fears of a cut in bank lending - helped drag down emerging markets in total, including Brazil, whose equity market is heavily weighted in resource-related companies that benefit from Chinese demand." the report said.

This resulted in modest exposure to emerging markets on August 31-09. The aggregated Australia/New Zealand market was essentially flat, as was Hong Kong/Singapore, while Europe excluding UK and Japan were underweights.

Batterymarch with main headquarters in Boston, Massachusetts, has satellite offices in Asia. It has around around $3.4 billion in emerging market equities worldwide, including $2.1 billion in Asia, company financial reports showed.

Golden opportunities

In a rel......................

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