Daily FNArena News - International

DBS expects currency markets to display more volatility this quarter as longer-term trends should emerge to drive changes in exchange rates.

Lehman Brothers is sticking to its underweight call on emerging markets, suggesting the current environment doesn’t support outperformance against developed markets.

Morgan Stanley suggests it isn’t the carry trade keeping a lid on the yen, but eventually fundamentals will win out and the currency should strengthen.

China’s Purchasing Manufacturers Index outcome for September suggests a slowing in the economy and a greater exposure to external markets.

HSBC has cut its forecasts for Asian economic growth due to predictions of a sharper than expected slowdown in the US economy in the next 12 months.

Financial market participants have not been impressed by Shinzo Abe’s first cabinet, though there is no change to the positive outlook for Japan’s economy.

Morgan Stanley’s Stephen Roach notes while the BRIC economies have performed well in recent years, global factors may contribute to a shift to underperformance.

Shinzo Abe takes over as prime minister of Japan on October 1st and faces the challenge of following in the footsteps of the popular Junichiro Koizumi.

Danske Bank cautions the coup in Thailand and unrest in other emerging markets adds up to a risk averse approach by international investors, which should limit short-term performance.

The Samsung Research Institute sees a mixed outlook for the Korean economy, as while interest rates are likely to have peaked, inflationary pressures will limit growth.