|Asia remains bright spot in world economy: report(04/03/04)|
Deutsche Asset Management reported on March 3 that Asia, excluding Japan, continued to be a bright spot in the global economy aided by its proximity to China.
In its report on Asia economic outlook, Deutsche Asset Management, which takes its headquarters here, said that China was enjoying a boom fueled by rising consumer credit and robust confidence. In Hong Kong there was room for spending to recover further as tourism from the mainland increased. In Singapore and Taiwan, however, consumption would remain sluggish due to the dragon confidence from structural transition.
Overall, the economic situation in Japan was more favorable nowthan at any time in the last ten years. But Japanese economy was heavily dependent on foreign trade, and therefore, any sharp slowdown in either the US or China could undermine its recovery.
Deutsche Asset Management expected Asian central banks to allowgreater fluctuation in their exchange rates this year as they had accumulated substantial foreign exchange reserves.
Deutsche Asset Management, the Asset Management division of Deutsche Bank, is one of the world's largest investment managementorganizations, and also one of the largest retail asset managers in the Asia Pacific region.