Contents
Asset allocation recommendations ................................................................................ 3
Overweight cyclical markets, underweight defensives 3
Upgrading Korea and Taiwan 3
The Investment Wheel 5
Increase equity and equity-linked issuance 6
Dollar weakness: good news for Asia 6
Early signs of improving liquidity 8
Cyclically adjusted P/Es 9
CoE peaks, equities bottom 11
Outlook for volatility 12
Investment implications 13
Country section............................................................................................................ 14
China 14
Korea 16
Taiwan 18
India 20
Hong Kong 22
Singapore 24
Malaysia 26
Thailand 28
Indonesia 30
Appendices ................................................................................................................. 32
1. Country asset allocation model 32
2. Asian key macroeconomic forecasts 37