According to the Asian Development Bank, Asia is now in rebound mode, with investments such as exchange traded funds (ETFs) in a position to continue the gains they’ve already made this year.

The Asian Development Bank, based in Manila, declared that economic growth in China would be 8.2% for the year, higher than the March estimates. A growth rate of 8.9% is expected for 2010. It also raised forecasts for India, now projected to grow 6% this year, and for developing Asian countries, forecast to grow 3.9% this year.

Keith Bradsher for The New York Times reports that developing Asia is thought to be more resilient to the global downturn than originally thought. They have been able to offset weak exports with domestic demand at a stronger rate than anticipated.

The decoupling theory is in play once again. The Asian region is thought to be less correlated with the West than analysts had initially believed. Economies that had greater ties to global trade were hit much harder in the downturn, and that Asia learned its lesson in its own 1997-1998 financial crisis.

Overall, Asian economies are thought to be stable and worthy of investment at this point, but watch the trend lines for signals.

For some broad exposure to Asia, have a look at:

• iShares S&P Asia 50 Index Fund (NYSEArca: AIA): up 52.7% year-to-date



• PowerShares FTSE RAFI Asia Pacific ex-Japan Portfolio (NYSEArca: PAF): up 61.4% year-to-date

For more stories about Asia, visit our Asia category.

Tags: AIA, Asia, China, Emerging Markets, Global ETFs, India, PAF