Asia Pacific equities posted US$3.3 billion net inflows

75% of fund managers overweight on Asia Pacific ex Japan equities, up from 44% in 3Q10, according to HSBC Fund Managers' Survey.

Moreover, Asia Pacific ex Japan equities posted US$3.3 billion net inflows, nearly tripling 2Q10's US$1.4 billion flows.

Greg Zeeman, Head of Personal Financial Services for HSBC in Singapore said: “In a prolonged low-interest environment, corporate bonds and emerging market bonds were relatively attractive to income investors while equities in Asia-Pacific ex-Japan continued to present growth opportunities. The outflows from Greater China equities most evident last quarter have now slowed as the recent interest rate hike by the People’s Bank of China cleared a long overhang of uncertainty.”

He added, “In Singapore, many investors may already have an overweight allocation to Asia ex-Japan equities, and thus they may consider increasing their exposure to the other emerging markets such as Latin America and Emerging Europe. Depending on their risk appetites, they can choose from single country exposures to regional emerging markets. Investors should speak to their investment advisors and relationship managers to learn more about the opportunities arising from the emerging markets and who are the best fund managers for the job."