While recent news flow focuses on the health of the eurozone or the likelihood of a US rate rise, away from the headlines Asia’s economic momentum quietly continues to build. On any number of measures the region now outpaces established western economies.
In terms of international passenger numbers, Asia’s airports take four of the top-ten spots, but the picture around freight traffic is very different. Here, Asian airports take up seven of the top ten spots, underlining the region’s status as the workshop of the world. In the world of shipping, the contrast is even starker, with all of the world’s busiest ports now located in Asia.
With its positive long-term fundamentals – and even as the Chinese economy continues to slow down – we believe Asia remains a cornerstone of future world growth. Increasing bond issuance and a broadening range of exposures across sectors, geographies and risk profiles make for intriguing investment opportunities. It remains something of an overlooked market but one, perhaps, whose time has come.
Sarah Percy-Dove – Standish, a BNY Mellon company