Economic conditions in most of the Asia Pacific region have started to improve in recent months after a period of moderation, and we expect that growth will accelerate in 2016 across developed Asia.
The rising Purchasing Managers’ Index (PMI) indicator suggests that the manufacturing sector has turned more positive. Stronger recovery in Europe and continued growth in the US economy are boosting new orders from overseas, lifting business sentiment in the export sectors.
The outlook for the region is supported by highly accommodative monetary policy. The Bank of Japan has pledged to maintain a very loose policy to combat deflation, and a number of other central banks have indicated their strong intention to keep interest rates low to stimulate economic growth. Some – such as China, India, New Zealand and Taiwan – have even trimmed rates further in September or October.
Source : M&G Real Estate