×

Asia Can Avoid a Correction

In spite of the strong run Asia has had since March, there could be more upside in the region's stock markets from the current levels, Ragu Sivanesarajah, senior portfolio manager at AMP Capital Investors told CNBC.

Asia has got all the ingredients for further gains: improving economies, better-than-expected earnings, positive company outlooks, inflationary pressures under control and attractive valuations, Sivanesarajah said.

And the recent pullback in the China markets is not a cause for concern, he said.

"Bring it back to valuations...(China) is not excessively valued so despite the run we've had, these markets are not excessively valued," he added.

Investors should put cash to work in companies with a higher return on equity and a higher return on capital because they are the ones that will drive the market forward, he said.