Young: Our stocks are not immune to slowing Asian growth

ON ASIA PACIFIC EX JAPAN

Aberdeen's Hugh Young warns his stocks could suffer as growth in the region slows, but says cheap valuations mean Asian equities still look excellent value for investors.

Entering 2014, we are in a strange sense optimistic about Asian equity markets. Yes, volatility will remain. This time it could be heightened by the Fed’s decision to reduce its bond-buying programme from January 2014 and the potential for capital flight to accelerate as a result. But when has volatility not been an integral part of equity markets? Growth in Asia will probably not pick up significantly, although export-focused nations could be well positioned for a recovery in the US and Europe. Some countries will likely struggle more than others. India and Indonesia are encumbered b...