Managers see heat in chilled Asia markets

Asia will continue to be an attractive place to invest despite market losses of up to 40% this year, portfolio managers said at a panel on Asian investing at the Morningstar Inc. conference yesterday. “It was a natural correction for these markets which have been overheating after five spectacular years,” said Anthony Cragg, managing director and senior portfolio manager at Wells Fargo & Co. of San Francisco. One of the reasons to expect a rebound is that the problems of the U.S. credit markets have not affected Asia, he said. “Salaries are increasing and people do not have mortgage or credit debt up to their eyeballs,” Mr. Cragg said. “What it does have is inflation.” Inflation is being driven by food and fuel costs, said Sharat Shroff, portfolio manager at Matthews International Capital Management LLC of San Francisco. Morningstar is located in Chicago.