Although bullish on emerging markets overall, Scudder, Stevens & Clark is ``quite negative on Asia,'' Joyce E. Cornell, a Scudder principal and product leader for the firm's emerging markets equity product, said in a press briefing today. In Ms. Cornell's view, most of Asia's stocks markets have ``gone as far as (they) can go - not only because many have become pricey, but also because the region's ``export model has run its course,'' she said.
At midyear, Scudder's approximately $350 million Emerging Markets Equity Trust for institutional investors had an underweighted 34% in Asia, a slightly overweighted 33% in Latin America, a sizably overweighted 23% in Eastern Europe and an underweighted 10% in the Middle East/Africa. Some nine months ago, Scudder had closer to a benchmark weighting in Asia, said Ms. Cornell. But the firm subsequently lowered its Asia weighting and shifted much of that reduction to markets of Eastern Europe. Scudder expects to increase its Latin American exposure ``at the expense of Asia,'' she said.