Asian Insights - Q3 2017

Looking ahead, what will be the next catalysts for growth and increased earnings in Asia? We believe a stable political landscape and acceleration of reforms will be the key drivers for Asian markets.

Aug 10, 2017 | Asian Investment team

Political stability is essential for any economy to undergo foundational and long-term changes. Efficient policy approvals and strong coalitions allow governments to carry out sustainable economic agendas. Within Asia, we observe some good examples of political stability, despite these countries being at different stages of their administration cycles.

Besides fundamental metrics such as corporates’ valuation and earnings, the stability of political leadership and reforms are an intangible aspect that would appeal to investors. With minimized policy risk, a stable political environment provides investors with clarity on the direction Asian governments are looking to pursue.

China, India, the Phillipines and Korea all show signs of political stability and progressive reforms, benefitting their economies and the Asian region. The outlook for these countries is promising and we anticipate ongoing reforms and continued progress into 2018.

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