High inflation in Asia would imply more tightening: CLSA
Higher rate of inflation in Asia would imply more monetary tightening than currently discounted by markets, says Chris Wood of CLSA.
January 07, 2011 / 09:03 IST
Here is expert equity call for the day on how the markets are expected to trade:
Chris Wood, CLSA: Higher rate of inflation in Asia would imply more monetary tightening than currently discounted by markets. However, we feel any such inflation scare is likely to prove a short-term spike rather than the start of a new trend, thereby creating a major buying opportunity in the Asian interest rate sensitives that will be hit by such an inflation scare, be it Indian or Indonesian banks or Thai/Philippine property developers.Bharat Iyer, JPMorgan: The Indian economy and the equity market have stepped into 2011 facing some powerful headwinds. Govt policy will have to deal with these decisively early in the year to ease investors fear of key macro issues like rising crude, higher inflation and tight liquidity which is expected to continue in 2011. 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!
