Mike Kerley, Portfolio Manager of Henderson Far East Income, talks about factors currently affecting the Asian market, notably the regulatory clampdown in China and the divergence in performance between North and Southeast Asian countries. Mike also explores what decarbonisation and the transition towards clean energy might mean for the region.

Key takeaways:

  • Fundamentals in Asia remain positive and companies in the region are well positioned to weather current headwinds – they are well-capitalised and will continue to benefit from structural growth trends.
  • China’s regulatory clampdown might affect its short-term growth. However, longer term, the quality of growth should improve as the government pursues its common prosperity’ policy.
  • North Asian markets have outperformed their Southeast Asian peers, largely driven by strong performance from tech companies. Markets in the South have lagged as they consist of contact intensive sectors worst