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Investors optimistic about Asia equity
10 May 2013
Most investors believe emerging markets will improve this year, according to Franklin Templeton’s new survey
More than 60% of global investors predict their local stock market to improve this year, according to Franklin Templeton’s latest global investor sentiment survey.
More than 66% of investors expect emerging markets to improve this year, compared to 58% for developed markets.
However, Jamie Hammond managing director for Europe at Franklin Templeton Investments, said investors have some reservations about investing in other countries: “While European investors think 2013 will be a better year for stocks compared to 2012, the region has the lowest percentage of investors that expect their local markets to increase in 2013, with only 43 per cent feeling very optimistic or optimistic about their national stock markets.”
Only 43% of European investors are optimistic about their national stock markets. The survey also showed that European investors think that Asia, rather than their own country, will provide the best equity opportunities in 2013 and expect the gap to grow over the next 10 years.
Some 28% of investors said Asia would provide the best equity return opportunity this year. However, three times as many European investors plan to adopt a more conservative investment strategy than plan to adopt a more aggressive strategy.
Two thirds of respondents expect the best equity and fixed income opportunities will be found outside their home market this year. This indicates rising optimism for global investing, said Franklin Templeton. The survey polled 9,518 investors in 19 countries across Asia Pacific, the Americas and Europe.