Daily FNArena News - International

China’s growth is tipped to slow this year but according to DBS Group this will make for more sustainable growth longer-term, making it a relatively safe haven in the current uncertainty.

As the Chinese government continues its fight against inflation its policy measures are becoming more restrictive and this has GaveKal cautious on the outlook for Chinese equities.

While GaveKal reiterates its lack of concern over a Chinese slowdown, Dennis Gartman has received some disturbing anecdotal news.

GaveKal fears the days of China’s deflationary impact may be over.

Both UBS and GaveKal are signalling the possibility of the Japanese stock market finding some strength.

Danske Bank suggests the Chinese Government intends to tighten monetary policy further via additional rate hikes, while a currency revaluation cannot be ruled out.

Having underperformed global markets over the past two years the Japanese market offers value but GaveKal cautions against taking an aggressive position as there are few catalysts to drive prices.

China is encouraging its banks to take stakes in foreign institutions, while over in Africa China’s resource interests grow.

It looked like Japan was about to drag itself out of a decade of deflation, but no more. The Aussie gets a green light.

Today’s economic data again surprised to the upside. Expect another Chinese interest rate hike, soon.