Investors are more confident now than at any other time during the financial crisis that regional economic growth will take root and sustain rallies in stocks and property, according to several market sentiment surveys.
ING's measurement of investor confidence for Asia excluding Japan climbed to a record in the third quarter, increasing from 132 to 143 on a scale of 0 to 200. The reading for Hong Kong jumped from 125 to 139 for the second consecutive quarterly increase.
Meanwhile, JP Morgan Asset Management's barometer for investor sentiment in Hong Kong reached its highest level since the fourth quarter in 2007, rising from 119 to 125 last quarter on the same scale.
'Asia is moving back on to a growth track,' said Nicholas Toovey, the regional head of equity at ING Investment Management.
'It may be sub-par by Asian standards, but it will still be reasonable and attractive growth by global standards.'
Key regional economies have shrugged off the global downturn in part by improving domestic consumption with a mix of aggressive monetary policies and stimulus programmes.
