`Asia's rising markets still attractive'

JAKARTA (JP): Asia's emerging capital markets are still attractive despite the sharp fall of prices early this year. Japan will be the best performing major market during the rest of 1994, a report says.

According to a report in the July issue of World Equity, the international investment magazine, over 50 percent of respondents believed that the Japanese equity market would perform best.

In a survey carried out among top chief investment officers, the magazine found that more than 70 percent of those polled had increased the number of Japanese equities into their funds.

Investors were, however, still enthusiastic about potential returns from emerging markets despite the recent volatility. South Korea topped the list of favorite emerging market performers, with Taiwan, Mexico, Brazil, Hong Kong and Malaysia also being considered to offer good prospects.

Albert Edwards of Kleinwort Benson reflected the common view, noting that "markets like Malaysia, Singapore and Thailand were previously overheated and values are more realistic now."

Of the 50 investors polled, only one said that the recent falls in Southeast Asian and Latin American markets had reinforced his company's attitude toward emerging markets.

Among the developed markets, France and Australia come a long way behind Japan, with 14 percent and 10 percent of the votes, respectively.(hen)