NEW YORK ( TheStreet) -- As U.S. equities continue to show signs of weakness due to fears of crippling debt in emerging Europe and a possible hiccup in the economic recovery, many have turned to alternative regions, in particularly Asia, to seek returns.
When speaking of Asia, the first nation to come to mind is China, but there are many more nations that are likely to continue to outperform. As a region, Asia has drawn attention due to its large growth rates and its ability to emerge out of the global recession with a V-shaped recovery. Take Hong Kong, for example, whose economy grew at a seasonally adjusted 3.3% in the second quarter of the year and is benefiting from China's stellar growth. The region has been able to pull itself up by its boot straps mainly due to fiscal stimulus plans, which accounted for nearly 4% of GDP, higher than any other region of the world.
Government stimulus packages have been successful in Asian nations due to low consumer debt and a high propensity to save. This way of life has lead these nations to further develop and enable incomes to rise, which will likely cause the domestic demand for goods and services to increase as well. In fact, demand from domestic consumption is expected to add nearly 7% to the growth rate of the smaller emerging nations of Asia.
To add to the region's attractiveness, most nations have kept unemployment rates relatively tame. Many big technology companies are increasing capital-expenditure projections and the International Monetary Fund has openly stated that it expects the region as a whole to continue to grow.