Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2018 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.

Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Indian Stock Market News, Equity Market and Sensex Today in India | Equitymaster
  • MyStocks


Login Failure
(Please do not use this option on a public machine)
  Sign Up | Forgot Password?  

Will Asia Pacific rebalance global growth?
Wed, 16 Jan Pre-Open

Amidst the concern of a global slowdown, a report from Moody's Investors Service is likely to bring some relief, especially for economies in the Asia Pacific region. As per the report, despite the global headwinds during 2013 and quantitative easing measures taken by US, the sovereign credit fundamentals in the Asia-Pacific region are likely to remain robust.

The report estimates a flat growth at 5% for the region. However, relatively, it will be much faster than the growth in any other region. Even for China, despite moderation, the growth is projected to remain strong. Moody's confidence stems from robust and well functioning banking systems in the Asia Pacific region. Apart from that, the region fares well on some basic financial health indicators like capital adequacy, liquidity, and asset quality. With these attributes, the region should be able to survive the negative surprises from the global economy. Also, the individual economies should grow without subjecting themselves to sovereign risks.

However, economic fundamentals is just one variable to decide a nation's growth in the long run. For any region to survive financial spill over and attain non inflationary and stable growth, policies will play a key role. Barring Japan which is likely to face long term challenges, Moody's expects some pro growth policies in big three East Asian economies triggered by the change in leadership.

However, there are a lot of issues and events that will decide the eventual outcome. These will include elections, outlook for reforms, and management of geopolitical tensions over maritime territorial disputes and so on. Nonetheless, the picture looks much brighter when compared to Western economies. Hence, one should not be surprised if leading economies continue to attract investors' interest in 2013.

For information on how to pick stocks that have the potential to deliver big returns, download our special report now!

Read the latest Market Commentary

Equitymaster requests your view! Post a comment on "Will Asia Pacific rebalance global growth?". Click here!


Small Investments
BIG Returns

Zero To Millions Guide 2018
Get our special report, Zero To Millions
(2018 Edition) Now!
We will never sell or rent your email id.
Please read our Terms


Feb 19, 2018 (Close)