Asian investors more confident
Asian investors are exhibiting more confidence and this is being reflected in improved trading volumes, according to a new analysis released by New York-based consultancy Axioma Inc.
Delivering its latest Asia Market Insight Report, the company said the start to 2013 had seen a return of investor confidence, a drop in risk-aversion levels and higher dispersions.
"Stock-pickers have returned to focusing on companies based on their fundamentals and potential for growth, rather than the potential for further austerity measures," the analysis said.
Among the key findings of the Axioma report were:
- Three consecutive months of depreciation had put the yen's volatility near its six-month high, as investors debated whether there would be further moves of the yen above its current levels. Externally, the major impact has been felt by the Korean won, whose volatility went from a six-month low in the November 2012 report to a six-month high currently.
- Value continued to give up some of its further quarter gains at the expense of growth and small caps as Asian investor confidence returned.
- The risk picture has put company-specific risk once again in the driver's seat and diversification back to work. Well-diversified bottom-up portfolios are the right design to make the most of this increased opportunity set.
- The new norm is one where bottom-up and top-down views cohabit and where successful investors will adopt a multi-dimensional approach to investing.
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