EMERGING ASIA'S BOND MARKETS NOW MORE STABLE

KUALA LUMPUR, May 5 (Bernama) -- Debt instruments issued by countries in
Asia are generally of better quality than those of other region as they are
relatively well positioned in terms of public finances, current accounts and
balance of payments, according to ING Investment Management.

The good quality of the debt instruments of Asian countries means that the
reward in relation to risk is lower at the moment than the bonds of countries in
Latin America and Central and Eastern Europe, it said in a statement Tuesday.

"Emerging Asia has the best basis for long-term growth in our view. This is
partly because of its relative stability, population growth and presence of
major countries like China," said head of global emerging markets, ING
Investment Management Europe, Rob Drijkoningen.

China, Drijkoningen said, is a relatively large domestic market and
generally better equipped to withstand a decline in world trade.

Similarly, India also has a large domestic economy although is a relatively
closed economy that depends on export for 23 percent of its growth, compared to
32 percent for China, he said.

Drijkoningen said China is keeping to its tradition of boosting domestic
growth when exports fall, mainly by promoting infrastructure projects.

"Of all the emerging economies, China has the best opportunities to adopt a
flexible monetary policy and stimulating fiscal policies. China can consequently
act as the engine of the region," he said.
-- BERNAMA