Markbericht Asien Jul10

Asia sustained its upturn in the second quarter due to brisk exports and domestic consumption.

Executive Summary

• Asian economies continued their upward momentum in the second quarter. Nonetheless, the sovereign debt crisis in the eurozone area and questions about the sustainability of growth in China following recent policy measures may affect Asia’s performance in the next six months.
  
• Notwithstanding the slight increase in the region’s credit market risk in the quarter, the region’s IPO market was strong, accounting for 65% of global activity.
  
• The region’s REIT market returns were diminished by the weaker sentiment in the broader equity market in the second quarter. Japan’s REIT market dropped by 7%, while the markets in Hong Kong, Singapore and Malaysia made slight gains.
  
• Rents of class-A office space in the region appear to have bottomed, as demand for space is on the rise. The market was bolstered by the improvement in business confidence.
  
• Asia’s retail market is stable due to the strong economy. High occupancies and robust tenant demand have created a favorable environment for landlords that will persist in the near term.