ASEAN, HK top defensive markets

ASEAN, HK top defensive markets

SINGAPORE: ASEAN and Hong Kong were identified as the top "defensive" markets should the global economy continue to head for a slowdown, a bank report said on Tuesday.

"We are overweight on all the ASEAN markets and Hong Kong on their resilient domestic demand," said the ABN Amro Bank report referring to the Association of Southeast Asian Nations.

Caution was expressed over South Korea, Taiwan, China and India.

The strategy for funds which have to remain invested in equities with no option to switch to cash is to maintain a defensive portfolio, said Eddie Wong, ABN Amro's chief Asian strategist.

"In our portfolio, which is based on a six-to-12 month view, we recommend maintaining a defensive and domestic-oriented portfolio and staying away from the global cyclical plays, notably technology and basic materials," said the report titled Asian Anchor. -- dpa