Credit Suisse backs Asian markets for 2007

11 January 2007

Credit Suisse First Boston has forecast that 2007 will be a strong year for Asian markets, with sustainable performances from most countries.

A report by the company's Private Banking division predicts that Asian equities will offer investors sustainable performance this year, boosted by strong domestic demand and currencies growing stronger.

Estimated earnings per share (EPS) of 12.6 per cent is forecast for Asia during 2007, driving equity markets up by as much as eight per cent over the next 12 months, with China equities looking particularly attractive this year.

Non-Japanese Asian markets delivered an impressive 30 per cent return on investment during 2006 and will remain attractive during 2007, according to the Credit Suisse Private Banking division.

Tactical correction of Asian equities is expected to occur during the first quarter of the year, with growth driven later in the year by increasing investment, strong export figures, high levels of domestic consumption and further decoupling from the US slowdown.

Fan Cheuk Wan, Director and Head of Asian Equity Research for the Private Banking division, commented: "We overweight China, Japan, Taiwan, Korea and Singapore, as they offer the most attractive investment opportunities in 2007 within Asia Pacific."

Credit Suisse claims that the most attractive sectors offering the best growth opportunities within the Asian markets this year will be the financial, consumer and technology industries.

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