Daily FNArena News - International

Macquarie suggests interest rates will mover higher in Japan, but the timing of further increases will be influenced by the level of the yen to the US dollar.

Forecasts for the yen against the US dollar are being revised lower, but conditions are in place for the Asian currency to rally against the greenback into next year.

Macquarie economists believe the macro picture in China is turning positive for the first time in six months.

DBS expects currency markets to display more volatility this quarter as longer-term trends should emerge to drive changes in exchange rates.

Lehman Brothers is sticking to its underweight call on emerging markets, suggesting the current environment doesn’t support outperformance against developed markets.

Morgan Stanley suggests it isn’t the carry trade keeping a lid on the yen, but eventually fundamentals will win out and the currency should strengthen.

China’s Purchasing Manufacturers Index outcome for September suggests a slowing in the economy and a greater exposure to external markets.

HSBC has cut its forecasts for Asian economic growth due to predictions of a sharper than expected slowdown in the US economy in the next 12 months.

Financial market participants have not been impressed by Shinzo Abe’s first cabinet, though there is no change to the positive outlook for Japan’s economy.

Morgan Stanley’s Stephen Roach notes while the BRIC economies have performed well in recent years, global factors may contribute to a shift to underperformance.