Daily FNArena News - International

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.

Shinzo Abe takes over as prime minister of Japan on October 1st and faces the challenge of following in the footsteps of the popular Junichiro Koizumi.

Danske Bank cautions the coup in Thailand and unrest in other emerging markets adds up to a risk averse approach by international investors, which should limit short-term performance.

The Samsung Research Institute sees a mixed outlook for the Korean economy, as while interest rates are likely to have peaked, inflationary pressures will limit growth.

DBS expects the US will begin cutting interest rates next year, with the move to have implications for rate curves in other markets given the relationship between the greenback and other currencies.

A report by CLSA suggests Hong Kong needs to do more to address its pollution issue or risk losing out to Singapore and other Asian cities.

Credit Suisse likes the India growth story but is realistic in its assessment, accepting much remains to be done before it can be considered as an equal of China.

The likelihood of the next increase in interest rate occuring next year rather than this year has led to revisions in forecasts for the yen.