ADB projects Asian equity markets recovery in HY 09

According to the Asian Development Bank (ADB) report, Asian equity markets are likely to recover in the second half of 2009 on the back of aggressive central bank policies including fiscal and monetary stimulus packages by various governments.

Stimulus policies resorted by government is expected to strengthen the current rally and contribute to better equity performance in the second half of the calendar year. Citing the rally witnessed in recent weeks, the report says the rally is mainly due to rising hopes of an early revival for the global economy.

Mirroring the decoupling theory on the back of the relatively resilient macroeconomic fundamentals of Asian markets have been faring better as compared to developed countries.