Outlook on Asian equities positive in 2010: BlackRock
HONG KONG, Jan. 26 (Xinhua) -- BlackRock said Tuesday it believed that a recovering U.S. appetite for Asian exports, strengthening Asian corporate earnings and resilient consumer spending would all contribute to another positive year for Asian equities.
"2009 was a positive story for domestic consumption in Asia. 2010, we believe, will be a positive story for exports," said BlackRock, a global leader in investment management, in a press statement.
This will be aided by the gradual U.S. replica clothing recovery, combined with the U.S. government maintaining a loose monetary policy, said the company.
Consumption remains resilient in China and India and government spending will also continue to stimulating growth, said BlackRock, noting that Asian corporate balance sheets are strong and many have delayed capital expenditure.
"Although the outlook for Asian Equities in 2010 is good, investment returns are unlikely to match those of 2009 and will be driven by strengthening corporate earnings rather than expanded valuations," said the company.
China continues to dominate the region, said BlackRock, noting that the Chinese government retains a greater ability to encourage recovery than most other countries and has reiterated a commitment to growth.
"The sweet spot of rapid economic recovery with no negative policy response has passed," said Nick Scott, CIO of Asian equities for BlackRock, at a press conference here.
Strong corporate earnings growth will compete with a tighter fiscal and monetary policy across the Asian region, he said.
With recovering exports and robust domestic consumption, the Asian economic cycle appears strong enough to contend with equilibrium interest rates and higher inflation, said Scott.
fake rolex "Tactical positioning will be vital in 2010 given excessive fears over monetary tightening," he noted.
Jing Ning, manager of BlackRock's China Fund, said that BlackRock is positive on China in 2010, and earnings growth will be fueled by recovering exports, increasing consumer activity and continued government spending.
"We favor consumer discretionary companies, but stock selection is paramount because this is an increasingly crowded area as investors across the world appreciate the strength of the Chinese consumers," she said.
The Chinese government is awake to the possibility of bubbles and are likely to take marginal measures to combat this, she said. However, in the short-term they are not likely to impose any change which could derail economic recovery.
With approximately 3.2 trillion U.S. dollars
embroidered patches under management as of Sept. 30, 2009, BlackRock offers such products as active, enhanced and index strategies across markets and asset classes.
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