"Ignoring Asia outright will prove to be one of the biggest mistakes an investor can make," says Yiannis Mostrous.
In Personal Finance, he notes, "Asia has entered a cycle of capital investment, infrastructure spending and domestic consumption that’s still in its early stages.eyes a trio of ideas in China, Indonesia and India." Here, he looks at a trio of favorites in China, India and Indonesia.
"Opportunities abound for the long-term investor. Asia can easily grow three times faster than advanced economies, even assuming a dip below its long-term trend growth of 8%.
"China Mobile (NYSE: CHL) offers good exposure to the Chinese domestic demand story. The company has a subscriber base of more than 300 million and generates 80 percent of the Chinese telecom industry’s mobile-related revenue.
"Although telecom competition has been intensifying in China, growth potential is still high. The penetration rate for China’s mobile telecom market is just 50% and continues to grow.
"China Mobile boasts superior network quality, strong brand-name recognition and a skilled management team--all of which set it apart from its competitors. With a yield of 3.5%, the stock offers both growth and income potential, which makes it a compelling long-term investment.
"HDFC Bank (NYSE: HDB) is India’s second-largest private sector bank. The bank reported strong third quarter profits and a 17% reduction in nonperforming loans. Loans increased 9.5 percent from the previous quarter.
"The market has failed to fully appreciate the bank’s ability to grow annual earnings by 30%. For that reason, stock performance should eventually surprise on the upside.
"PT Telekomunikasi Indonesia (NYSE: TLK) offers steady growth in a promising economy. Its mobile unit, Telkomsel, occupies a dominant position in the market and offers growth opportunities.
"Mobile penetration remains low in the hinterlands at 25% to 30%, whereas mobile penetration nationwide currently stands at around 40%. Overall, PT Telekom remains one of the best telecom plays in Asia, thanks to a modernizing Indonesian economy and growing demand for mobile services."
