The investor sentiment of the Asian region for the fourth quarter of 2013 was buoyed up slightly higher by a sharp improvement of investor sentiment in Japan and a warmer reception to equities, the latest Manulife Investor Sentiment Index for Asia showed.
The Manulife Investor Sentiment Index for investors from Mainland China, Hong Kong, Indonesia, Japan, Malaysia, Singapore and Taiwan increased from 15 points in the previous quarter to 16 points in the fourth quarter which covered three months ending December 31. For the first time, the Philippines was included in the index for the fourth quarter which resulted to the overall sentiment rising to 22 points which reflected the same level as that of the investor sentiment in the fourth quarter in the US.
In Japan, investor sentiment went up to 18 points in the fourth quarter from 9 points. Indonesia also went up from 3 points to 41 points in the same period. Although Hong Kong still has the most pessimistic investors in Asia, its reading increased by 1 to -13. The Philippines registered the most optimism with 66 points.
As far as asset classes are concerned, the survey showed that investor sentiment towards equities went modestly from 3 points to 9 points while that of other classes changed little in all. Investors still favored cash and own-residence property, the survey showed.
Investor sentiment still favored fixed income over equities despite the impact on bonds that the potential tapering of the quantitative easing program will have. As far as actual investment goes, however, bonds comprised only 5% of investors' portfolios, making it their lowest holdings, according to the survey.
In a statement about the survey, Manulife Asset Management Fixed Income Managing Director Endre Pedersen said, "We see reasons for investors to shift their exposure from a non-performing asset class like cash to fixed income securities with higher recurring income potential during 2014."
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