YoY inflation in Asia will peak in July: Credit Suisse

Here are experts equity calls for the day on how the markets are expected to trade:

Sakthi Siva, Credit Suisse: The year on year inflation in Asia and GEMs will peak in July. In 2004, GEMs rallied strongly in the second half of the year as inflation peaked with MSCI EM Index rallying 28% from the lows to year-end. We believe the 2004 comparison supports our year-end target for 16% upside potential in MSCI Emerging Market Index. Emil Wolter, RBS: The sentiment is not overly bullish, nor is positioning crowded, outside the commodities complex. Given the ongoing fund inflow to the Asian region, we believe investors' ability to simply await a decent correction will be short-circuited by need to put money to work and catch up with market. We favour under-owned financials, especially banks, which do not suffer from rising input costs and can defend margins through re-pricing assets faster than their liabilities.