Bulgari, the luxury goods company, yesterday said sales had improved in the second half of the year, driven by higher demand in Asia.

Francesco Trapani, chief executive of the Italian jeweller, said: “Greater China, including Hong Kong, Macao, Taiwan, are doing well and Australia, South Korea and the UK are doing okay.”

Bulgari has been hit hard by the slowdown because of its reliance on big-ticket jewellery and watches.

It made a net loss of €40m ($59m) in the first six months of the year compared with the same period last year.

However, Mr Trapani said that sales in the past three to four months were “significantly better” than in the first six months of the year, both for retail and wholesale.

This was owing to higher sales of handbags and Asian demand.

Asia excluding Japan is one of the few regions to have continued to grow during the recession for luxury goods companies.

Christian Dior – one of the top brands of LVMH, the biggest luxury goods company – said this week that its investment in the region was bearing fruit.

Over the past decade, luxury goods companies have focused on expansion in Asian economies, especially China.

Sidney Toledano, chief executive of Christian Dior, said during the Paris fashion shows this week: “We are developing enormously in Asia. I think we made timely bets a few years ago.

“All of Asia, Hong Kong, Singapore, all of China is expanding very strongly.”

In the first six months of this year, Bulgari's sales in Asia excluding Japan accounted for 23 per cent of total sales, up from 20 per cent in the same period last year.

Within Asia, Japanese demand remains depressed.

Yesterday, Yohji Yamamoto, the fashion house known for its black deconstructured clothing designs, filed for bankruptcy protection.

That news came just two days after Versace, the Italian designer, said it was pulling out of the country.

Bulgari's sales to Japan fell 29 per cent in the first six months of this year compared with the first half of 2008.

However, Mr Trapani said Japan remained profitable, and it planned to keep 40 stores in the country.

“Of course we are suffering, because Japan is in a difficult situation, but we do not plan any major restructuring,” he said.

“We may close one or two stores, but more because we are trying to improve certain locations.”