Asia's millionaires see 'dip in fortunes'

Asia's millionaires see 'dip in fortunes'

HONG KONG (AFP): The rich got richer last year -- unless they lived in Asia, according to a study released here on Tuesday.

The wealth of those with assets worth more than US$1 millions rose six percent to $27 trillion globally last year. However, Asia's 1.7 million rich saw their assets lose nine percent of their value to $4.9 trillion, according to the World Wealth Report 2001.

The report produced by Merrill Lynch and Cap Gemini Ernst and Young said the fall occurred despite good economic growth in many countries in the region.

"The Asian region, including Japan, was the only one to report a drop in wealth," the report said.

Their combined wealth accounted for 18.2 percent of the world's assets held by millionaires last year, down from 21 percent in 1999.

Most to blame was the limp Japanese economy and a 26 per cent fall in the key Tokyo stock index. Most other sharemarkets in the region also tumbled.

The fall in Asian millionaires' wealth last year followed a bumper year in 1999 when their coffers expanded 22 percent.

In Japan the number of wealthy dipped 5.7 percent last year to an estimated 1.08 million people. Nevertheless, the number of millionaires was still 30 percent higher than in 1998, the report said.

The amount of wealth held by the rich in the U.S. and Canada rose nine percent last year, Europe added 7.5 percent and there was a 6.5 percent gain in Latin America. The Middle East saw the greatest growth with 18 percent, while Africa's figure was unchanged from 1999.

The number of millionaires in North America was the highest of any region with 2.54 million holding combined wealth of US$8.8 trillion, followed by Europe with 2.3 million people having $7.2 trillion.