Dorval Global Investment Management announced the results of a survey today, showing that investors in the Asia-Pacific region are generally optimistic about the economic outlook in Asia. Most investors plan to increase their investments in Asia-Pacific bonds. The survey results show that nearly 46% of respondents plan to allocate to fixed income in the future, a 9% increase from 37% a year ago. At the same time, Asia-Pacific investors plan to allocate 28% of their fixed income investments to countries outside of Japan in the next 12 months, up from 26% a year ago. The second most important destination for fixed income allocation is Japan, which has remained stable at around 16% in all time frames. Only 14% and 13% of assets are invested in fixed income in North America and Europe, respectively. The survey was conducted earlier this year and interviewed 600 asset management companies, asset owners, family offices, private banks, and commercial banks from the Asia-Pacific region. When asked which fixed income region they expect to perform the best in 2024, 36% of respondents chose Asia outside of Japan, followed by 15% for Japan, and 14% for North America. Only 9% of respondents are most optimistic about the performance of the European bond market. Ming Hui, ETF strategist for fixed income at Dorval Global Investment Management Asia-Pacific, said that before the Federal Reserve raised rates in March 2022, bond yields hit historic lows for a decade, weakening the bond's income-generating effect, but the recent rate hike cycle has revived the bond's role in this regard. In addition to local preferences, strong economic growth in Asia has also boosted the optimism of Asia-Pacific investors. The increasing allocation of Asia-Pacific (excluding Japan) fixed income by Asia-Pacific investors shows their growing confidence in the Asian fixed income market as a stable source of returns. Huang Qingxiang, Head of Bond Investment Management in the Asia-Pacific region and Managing Director of Dorval Global Investment Management in Singapore, said that as inflation gradually comes under control, markets generally expect a global easing cycle, a positive sign for the continued strong performance of many Asian bond markets. Compared to more mature markets, investors are more optimistic about this region.