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Room for Optimism on Europe: Mark Mobius

There is room for optimism that Europe's economy will recover, Mark Mobius, Executive Chairman at Templeton Asset Management's Emerging Markets Group told CNBC on Thursday, as companies in fast-growing emerging markets look to make acquisitions in the region.

Mark Mobius, executive chairman of Templeton Asset Management's Emerging Markets Group
Bloomberg | Getty Images
Mark Mobius, executive chairman of Templeton Asset Management's Emerging Markets Group

"One of the reasons why I'm optimistic about Europe is that all this money in emerging markets is waiting for the opportunity to buy assets in Europe," he said.

"So there's going to be plenty of opportunities for Europe to sell state assets or other assets... So the picture looks very good," Mobius told CNBC's "Squawk Box Europe".

Despite the global impact of the euro zone debt crisis, Mobius said emerging markets would continue to outpace their Western counterparts.

“The emerging markets are doing very well. Economically this year average growth for all these markets would be around five percent and the debt to GDP levels are low compared to developed countries,” he added.

He admitted that fears of a slowdown inChina's economywere a threat but this was to be expected given its size. India could yet surprise its critics, he said.

“There is deceleration, it’s still growing and we can expect that because the base is so huge and the size of that percentage is going to come down.

"Despite India’s corruption problems and organizational problems they still have rapid growth and if they can reform you are going to see the kind of growth rates China experienced in 5 or 10 years ago,” he said.

Mobius added that China currently offered interesting investment opportunities, as did Eastern Europe.

"Generally speaking we're back in China. We're doing more in China now because of this negative sentiment there's some opportunities in China we can look at through the Hong Kong Market of course," he said.

"The other area that is interesting for us still is in South-East Asia. Indonesia in particular, Thailand still looks quite good so we're buying more there."

In Europe there were a number of opportunities, he said, but the problem there was one of growth.

"Growth rates are not as high as they should be but there are some individual stocks that are breaking out and are moving internationally and regionally and growing that way. I would say that some of the eastern European opportunities are very interesting," he said.

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