Daily FNArena News - International

HSBC predicts US interest rates will be raised twice this year, but Hong Kong is unlikely to follow suit.

ABN Amro expects short covering to result in a bounce on Asian markets in coming weeks, and the broker advises investors to sell into it.

All major economies are facing an ageing problem, but China’s will be exacerbated by its One Child Policy introduced by the Communist regime in 1979. Balances will need to be struck.

China’s emerging middle class cannot be underestimated, and foreign companies wishing to benefit will need to follow the Chinese up the income ladder.

Contrary to the Bank of Korea’s policy stance, Alliance Bernstein feels South Korean growth is peaking.

A shift in China’s FX policies would probably help ease growth, but HSBC strategists see this as unlikely ahead of next year’s political reshuffle.

Stainless steel prices could rise by as much as 19% over the coming four months, MEPS says, pushed higher by nickel.

As metal prices stabilise, Deutsche Bank predicts large scale upside for Hong Kong’s Jiangxi Copper and Zijing, as well as India’s Hindalco.

DBS believes China will need to raise interest rates and allow its currency to appreciate further and faster.

Chinese manufacturers are feeling the squeeze of higher input costs and intense competition. CLSA believes they will soon start raising prices for exports, pushing inflation up worldwide.