A long-term developing trend in Asia, according to international investing expert Yiannis Mostrous, is a rise in domestic demand within their own economies.
In Personal Finance, he looks at one favorite sector that will benefit -- wireless phone services -- and highlights two of his top choices, Chunghwa Telecom (NYSE: CHT) and China Mobile (NYSE: CHL).
"The current crisis will lead to profound changes in the global financial system. Societies in developed economies will begin to save more, while people in developing nations will begin to spend, nurturing domestic demand economies.
"The Asian economies should be able to move even closer to their ultimate economic goal: domestic demand-led economies.
"These countries have realized that factory building and manufacturing to satisfy consumer needs in the developed world can't remain their primary growtth engine.
"Accordingly, the new model is focused on domestic demand, and governments will have to ensure they can make this change happen.
"Although the process has been underway for some time, the current crisis has brought these changes to the forefront. Governments in Asia realize that they have to move faster.
"True, Asia will remain the world's factory for the long term. The infrastructure is in place, as are the capacity and technology to produce valuable goods for years to come.
"Once the global economy starts to grow again, these factories will be there to produce again. This is a long-term positive for Asia, too, but the development of a growing middle class will be the real game-changer.
"Chunghwa Telecom is the leading integrated telecom service provider in Taiwan. The company enjoys market shares of 95% for fixed-line, 41% for wireless market share and more than 80% for broadband.
"Chunghwa intends to enter the property development business, mainly through the redevelopment of land and buildings the company owns. The properties will become available as the company reduces staff and moves to a modern technology platform that requires smaller equipment.
"Although the plan will take time, it's expected to help Chunghwa generate big revenues. The company will benefit from Taipei's eventual re-emergence as Chinese money starts flowing into the city.
"Chunghwa provides a stable 7% dividend yield and reliable earnings from its core operations. Its large capital surplus also allows for return of excess cash to stockholders at regular intervals. Buy Chunghwa Telecom under 20.
"ChinaMobile is one of the largest mobile service providers in the world, boasting a subscriber base of more than 300 million. It operates mobile telecommunication services in 31 provinces and municipalities in China.
"China's potential in mobile telecommunications is huge: The nationwide penetration rate is around 40% and is growing rapidly. In rural areas the penetration rate is around 19% -- this will be the company's next growth driver.
"In today's market environment, China Mobile's high earnings visibility and skilled management are rather unique and highly attractive qualities. After the current selloff, valuations also have become more reasonable. Buy ChinaMobile under 60."
Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.
Nuclear power is on the comeback trail
Apple backs AT&T in continuing spat with Verizon
Closing Bell: The recession is still over, still... do you feel it?
