MARKET VIEW: Crouching tiger
Asian markets have rallied strongly from March lows with the MSCI Asia Pacific index up by 65 per cent. As a result, returns from Asia ex Japan equities are expected to be more moderate with he market now back up to historical average valuations. In October, India's central bank also took the f...
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Published in | Money Marketing p. 59 |
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Main Author | |
Format | Magazine Article Trade Publication Article |
Language | English |
Published |
London
Centaur Communications Limited
12.11.2009
Centaur Media USA Inc. (A member of Centaur Plc Group) |
Subjects | |
Online Access | Get full text |
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Summary: | Asian markets have rallied strongly from March lows with the MSCI Asia Pacific index up by 65 per cent. As a result, returns from Asia ex Japan equities are expected to be more moderate with he market now back up to historical average valuations. In October, India's central bank also took the first step towards withdrawing monetary stimulus from the system, ordering banks to return to pre-crisis level holdings in Government bonds. The move is expected to pave the way for a rate rise early in 2010 as inflationary pressures in the country continue to build. Other Asian countries are likely to follow suit, with South Korea expected to be among the first. With exports falling and inflation still negative at -0.8 per cent year over year, concerns appear overdone at this stage. That is not to say there will not be some withdrawal of excess liquidity but monetary tightening is not yet necessary and we expect to see inflation move above zero before meaningful tightening is required. |
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ISSN: | 0958-3769 0958-3769 |