Investments

Fund managers place bets in Asia's oversold assets, such as high-yield bonds

As contagion from worries over global growth and trade friction pushes Asian equity, bond and currency markets deeper into bear territory, fund managers are hunting for bargains in Chinese and Indian equities and high-yielding Asian dollar bonds.

A cocktail of negative factors has driven MSCI's broadest index of Asia-Pacific shares outside Japan down 15.5 per cent so far this year. Currencies from emerging markets whose economies are vulnerable on the current account have come under pressure.

Stephen Chang, a Hong Kong-based portfolio manager at global bond house PIMCO, reckons the region's high-yielding dollar bonds have become cheap, after higher US interest rates pushed prices lower.

READ THE ARTICLE by MSCI