HSBC Asset Management favours Japan over Hong Kong as an investment target, according to its Asia-Pacific equities chief investment officer.
Although the Japanese economy faced zero or negative growth this year, Ian Burden said yesterday the company's stance was based on those manufacturers which gained from a weaker yen, including Sony and Honda.
'The [Japanese] stock market is selectively attractive at the company level, but not overall,' Mr Burden said.
Like much of the investment industry, HSBC is now overweight on Europe and North America and underweight on Japan and the rest of Asia.
Continental Europe was the most preferred investment centre, followed by North America, Britain, Australia, Japan, Hong Kong and the rest of Asia.
'We certainly don't believe the Asia story is over but we are not looking for a quick recovery,' Mr Burden said.
