Daily FNArena News - International

Emerging markets have been dumped big time. India finds its current account deficit worsening and may have to dig into reserves. But Citigroup sees a solid growth story behind the figures.

Have the market fundamentals changed for Japanese equities? No, says NikkoCitigroup. Over at JP Morgan strategist Kitano is not so sure.

A share market down 12% and a decelerating domestic economy. Singapore doesn’t look an attractive opportunity, but Citigroup believes things won’t turn out as bad as they appear.

India’s economic importance is clearly on the up and ANZ says opportunities abound for Australia.

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.