Daily FNArena News - International

Recent volatility and a history of poor performance near the top of the interest rate cycle in the US has brokers suggesting Asian emerging market performance may be subdued in the next few months.

The prospect in Indonesian interest rates falling to 10.75% this year is expected to bode well for the stock exchange, particularly banking and property stocks.

Brazil, Russia, India and China will be among the six largest economies globally by 2050, but each are developing at their own speed.

UBS believes the underperformance of Korean equities could soon reverse.

First ABN Amro and now Credit Suisse is advising Asian investors to sell the current bounce.

Both HSBC and Deutsche Bank remain positive on the longer-term outlook for Asian markets, but suggest defensive exposures should be a focus for investors.

The market is factoring in an increase in offical rates by the Bank of Japan next week, with the experts suggesting the economy is now strong enough to withstand such a move.

ANZ Bank suggests the Chinese currency is not that far from fair value, and moves to stabilise the banking sector will take priority over currency revaluations.

With the US Fed set to pause, DBS sees the Thai baht as overvalued and expects the Taiwan dollar to recover.

Slowing economic growth in the US is expected to impact on Asian markets. ABN Amro has a few favourites.