Although many analysts say that it´s necessary to diversify in order to have a not so volatile overall result, on the past months we have learned that emerging markets are more linked to the US stock market than we thought.

Straits Times (STI), the Singapore Stock Exchange Index,  is currently at a value of 2,792. Four months ago, on November 2007, STI reached a 3,906 value. Therefore, Singapore has gone down 30%. Nikkei 225 is now at it´s 2,5 year low, and lost more that 40% of its value in only 5 months.

China, Phillipines, Thailand and Malaysia, completing the 6 most interesting markets of Asia according to their low indicators, suffered an average decrease of 28%.Therefore, investors should be seeking for opportunities, that are all over these markets. In Asia, there are many companies with a P/BV (Price to Book Value) under 0,50, PER (Price to Earnings Ratio) of under 5, good liquidity and with continuing growth.

US fears seem to have a stronger effect in these markets, generating bargains opportunities.In US, recession is a fact although there hasn´t been two consecutive quarters with negative GDP (Gross Domestic Product), and Asiatic markets have been infected. When this crisis is over, Asia/Pacific Exchanges will have a spectacular rally, very superior to the expected US recovery. That´s the reason why we will be studying some of the most attractive enterprises of these countries in the next weeks.