Returns from Asia unlikely to be +ve in H1: Morgan Stanley
Inflationary pressures are starting to adversely impact the performance of Asia & EM equities, says Jonathan Garner of Morgan Stanley.
February 02, 2011 / 08:55 IST
Here are experts equity calls for the day on how the markets are expected to trade:
Jonathan Garner, Morgan Stanley: Inflationary pressures are starting to adversely impact the performance of Asia & EM equities. We continue to highlight our view that absolute and relative returns from Asia & EM equities are unlikely to be positive in H1. Moreover, Asia & EM equities have just experienced their largest outflow week at USD 3 billion since July 2008. This came before recent events in Egypt, which is also likely to contribute to raising the equity risk premium in the near term.Tim Dickson, Invesco Perpetual: I think the correction in emerging markets is probably quite healthy. Valuations had run up in India and did not seem to be reflecting the strong headwinds created by monetary tightening. Clearly the noise regarding scandal has also been a contributing factor. I remain positive on the longer term outlook for India and see current events as a hiccup. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
