Asian Equity Markets (3)

Asia grew

More importantly, significant steps have been made to finally drag Japan out of the financial doldrums with mportant changes particularly with respect to abolishing cross-holdings, restructuring postal savings scheme, opening up of Japanese companies to foreign interest, and a renewed penchant for corporate restructuring.

All that is happening with the consumer base of two of the largest populated markets in the world (India and China).

Hence to view Asian equities as cyclical would be dangerously foolish and uninformed.

Asia grew at an impressive 7.3% in 2004, according to the Asian Development Bank.

In fact, 2004 marked the region's "best growth performance since the Asian financial crisis of 1997-98".

First-quarter 2005 data supports the view the region remains on an upward trend. India grew at a 7% rate while Japan registered 5.3% during the first three months of 2005.

That trend has basically continued going into 2006.