South Korea and Taiwan will gain from the upturn in hi-tech spending, say analysts
Strong demand for high-technology goods such as semiconductors and computers, coupled with sustained liquidity inflows into north Asian markets, should continue to benefit Taiwan and South Korean equities.
Taiwan's Weighted Index has climbed 35.56 per cent this year as United States firms such as Hewlett-Packard, which accounts for 10 per cent of the island economy's exports, step up orders.
Rival South Korea, which competes with Taiwan for a share of the global information-technology market, has seen its Korea Composite Index increase 23.81 per cent this year.
State Street Global Advisors portfolio manager Brad Aham said the gains should continue as global fund managers sought out higher returns in north Asian markets.
'As long as interest rates remain low, there will be abundant liquidity into the area,' Mr Aham said.
He said Taiwan was his biggest bet, noting the island's high-technology manufacturers stood to benefit from the cyclical upturn in corporate IT spending.