Standard & Poor’s (S&P) Indices has launched a benchmark that provides exposure to the largest companies in emerging Asia.
The S&P Emerging Asia 40 Index was designed to track the 40 largest and most liquid equities from developing nations, including China, India, Indonesia, Malaysia, the Philippines and Thailand, S&P associate director of global equity indices Michael Orzano said.
“Its constituents offer strong Asian growth stories coupled with mature-company stability and liquidity, while its balanced design minimises single-market risk and maximises exposure to Asia’s most exciting and attractive economies,” Orzano said.
For China and India, the index comprised the top 10 listed stocks from each country trading on the Hong Kong Stock Exchange, the London Stock Exchange, NASDAQ and/or the New York Stock Exchange, he said.
The remaining companies include the top 20 listed stocks by total market capitalisation from the four South-East Asian markets.
Emerging Asia was forecast to be the fastest-growing economic region in the world, according to an International Monetary Fund (IMF) report in June.
Gross domestic product for developing Asia – which includes the economies in the S&P Emerging Asia 40 Index – is projected to expand 8.4 per cent in both 2011 and 2012.
In contrast, the eurozone is expected to grow by 2 per cent in 2011 and 1.7 per cent in 2012.
World output was forecast to increase 4.3 per cent this year and 4.5 per cent in 2012, the IMF said.
