Based on the 2016 edition of the Milken Institute Global Opportunity Index, the report assesses the attractiveness of Asian countries to foreign investors and provides a closer look at the composition of Asia’s capital inflows. The region is strong when compared to the rest of the world, especially in terms of business perception, but would benefit from a harmonization in the financial infrastructure and from a deepening of its financial markets. There is significant potential for capital flows, FDI and portfolio flows, to play a greater role in financing investment, but this will depend on financial integration of the region’s peripheral markets.