Latham & Watkins has launched an Asia litigation practice with a lateral hire from Jones Day's Hong Kong office, reports the Am Law Daily.

Hong Kong-qualified lawyer Simon Powell, who joined Latham's Hong Kong office last week, is regarded as one of the region's top insolvency and litigation specialists. He also advises financial institutions and companies in the region on securities and competition regulation, as well as commercial litigation.

Prior to joining Latham, he had been acting as special counsel on Asia litigation for the Lehman Brothers estate in the Lehman bankruptcy.

The hire makes Latham the latest international firm to bolster its litigation capabilities in Asia, seen in the past as fertile ground only for corporate practices.

Though transactional work remains the predominant focus of most global firms in the region, the sharp downturn in 2008 and early 2009 led many to seek greater balance in their Asia practices. Several firms, including Skadden Arps Slate Meagher & Flom and Linklaters, relocated litigators to Hong Kong, the region's financial capital, during that period.

Latham looked to Asia following the successful expansion of its European litigation practice over the past decade, according to London-based partner and vice chair of global litigation John Hull.

Europe now accounts for 20% of the firm's litigation revenue, Hull said, noting that Asia holds similar potential in the "pent-up demand" for litigation advice among the firm's clients.

Latham plans to seek out both high-end local representations as well as "export" work, said Hull, in which the firm represents an Asian client in US litigation. Such work has grown in importance for American firms as more and more Asian companies have become embroiled in US lawsuits.

Powell says a stronger regulatory environment in Asia will also lead to increased demand for litigation advice. He expects to work closely with Michael Liu, a top capital markets lawyer who joined Latham from Allen & Overy last year and was recently made the firm's Hong Kong managing partner.

Liu agrees companies involved in major transactions in Asia face increased regulatory scrutiny. "We will see more independent law firm investigations," says Liu. "I think this area will be very, very big."

The Am Law Daily is a blog on law.com, Legal Week's US sister title.