Solomon Layb Report: Asia And Europe Trump Us And Uk Among International Investors

Asia has dethroned Europe as the first choice for investment exposure among international and expatriate investors.

The top four for investment exposure are Asia, Europe, US with the UK last, compared to Europe, US,
Asia and the UK, according to research among expatriate investors in 30 countries from Solomon Layb.
Investment in Asia has risen from 33% to 39% - a bigger increase in investment exposure than anywhere else. More international and expat investors are now exposed to Asia than to anywhere else, regardless of where they come from. The Asian region scores the highest level for positive sentiment, with confidence in China at 42%, India scored 32%.

The Solomon Layb report shows there is virtually no negative sentiment towards the Asian markets whatsoever with only 3% of respondents negative about China and 2% about India. A closer look shows that barriers to investment in Asia have declined on all specified criteria - lack of knowledge by 12%, concerns over volatility by 6%, market volatility by 10% and uncertainty over economic prospects by 11%.

Europe has registered the biggest shift in positive sentiment across the survey with now only one in ten
saying they are negative about economic prospects in that region compared to one in three. Today, more international and expat investors are invested in continental Europe (37%) than they are in the US (29%) and the UK (26%).

Despite the rocketing Dow, less than 1 in 3 expat investors is invested in the States, a drop from 35% to
29% in one year. Positive sentiment towards the US also has dropped from 24% to 10% this year and negative sentiment remaining at a very high level (41%).

Alexander Clark, General Manager Solomon Layb says: "While the US is doing well, gains in equities are
offset by losses in the dollar and discolored by growing negativity towards the US economy's long
term prospects. The rise in the FTSE and the Dow are not being fuelled by enthusiastic expatriate and
international investors, who in the main are looking East".

While less polarized, views towards the UK among international investors are hardly much rosier, with
14% positive but 16 % negative. 30% of investors were exposed to UK in 2006 dropping to only one in
four (26%) today. "While sentiment towards the US and UK is low, it seems not to affect investment
exposure materially, at least for the moment. Investors are more positive towards continental Europe,
but once again investment exposure there has stayed the same at 37%. It is only Asia where we see a
direct correlation between positive sentiment and increased exposure".

Solomon Layb is one of the Asia's leading derivatives, FX and commodities trading advisors. More than 3500 registered customers from 160 plus countries world-wide execute over 1 million trades per month with Solomon Layb, with total trading volumes exceeding $1.1 billion / month.

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Joshua Manfield
Press Contact, Solomon Layb