BANGKOK, Sept 15 — Investors are advised to invest in stock markets in China, Hong Kong, Taiwan and South Korea on positive signs that their economies would continue to sustain growth while Asian stock markets have started to rebound, said Komsorn Prakobphol, a senior investment strategist at Tisco Wealth.
Mr Komsorn said there are signs that the economies in the three countries and Hong Kong island would continue grow. The price to earnings (P/E) ratio of Asian bourses is still much lower than several developed stock markets, he said.
Currently, the MSCI Emerging Markets Far East Index trades at P/E 11.2x compared to the US and European markets at 15.7x and 14.3x respectively, which makes the Asian markets attractive, he said.
Tisco Wealth, said Mr Komsorn also adds investment weight to the Taiwanese stock market which it considers the most attractive market at present.
Taiwan’s economy has benefitted from the recovering economies of developed countries, including the US whose currency has also started strengthening, he said.
The Taiwanese bourse receives about half its revenue from developed countries, the highest among Asian countries, while revenue from the US is 25 per cent of its total revenue.
At present, the Taiwanese stock market is traded at P/E 13.9x, still lower than the average 15.2x, making the market very attractive for investment, Mr Komsorn added.
