Asian inflation could accelerate in 2014: CLSA

Gerard Minack, Morgan Stanley said that, "The relative valuation on stocks with above average dividend yield already looks rich on some measures. However, the factors pushing investors into equity yield seem likely to persist for the foreseeable future. Amidst what could be relatively mediocre returns for equities over the medium-term, dividends may be an outperforming theme."

Eric Fishwick, CLSA said that, "We expect macro data in Europe and US to improve next year and Fed to end QE by 2014 and raise rates by early 2015. However, Asian growth will be below consensus in 2013 and could improve in 2014. Asian inflation could accelerate in 2014 as a potential rise in commodities could result in higher interest rates."