Pessimism in Asia

Research conducted by Gallup for Merrill Lynch shows that although global inflation and rate hike fears are falling, managers remain bearish on Asian equity markets. By contrast, optimism about China remains high, with 74% expecting a strong Chinese economy, and with buyers of Chinese equities outnumbering sellers by a record margin. With China's entry to the WTO imminent, 74% of fund managers feel strongly that the move will be a positive one for the region – a feeling echoed by a large number of foreign investors.