Matthews Asia's Shroff: Where we are finding opportunities

Over the course of 2016, the factors driving Asia's capital markets changed, writes Sharat Shroff, portfolio manager at Matthews Asia.

These included a shift in market sentiment from worrying about the threat of deflation to anticipating inflation; expecting a shift from monetary to fiscal stimulus to a near certainty of this transition; and coping with an increase in political risk to somewhat more frail economic conditions in parts of the developed world. Looking ahead, we see some clear risks. Some of which, like the possibility of normalisation in the US interest rate cycle, are quantifiable.  However, on the whole, the Asia region is much better prepared now than it was during the taper tantrum in 2013. Matth...