Daily FNArena News - International

UBS believes the underperformance of Korean equities could soon reverse.

First ABN Amro and now Credit Suisse is advising Asian investors to sell the current bounce.

Both HSBC and Deutsche Bank remain positive on the longer-term outlook for Asian markets, but suggest defensive exposures should be a focus for investors.

The market is factoring in an increase in offical rates by the Bank of Japan next week, with the experts suggesting the economy is now strong enough to withstand such a move.

ANZ Bank suggests the Chinese currency is not that far from fair value, and moves to stabilise the banking sector will take priority over currency revaluations.

With the US Fed set to pause, DBS sees the Thai baht as overvalued and expects the Taiwan dollar to recover.

Slowing economic growth in the US is expected to impact on Asian markets. ABN Amro has a few favourites.

China’s reforms may be moving at a slow pace, but HSBC says they seem to be straight out of World Bank executive summaries and that a strange sort of soft landing is on the cards.

China’s manufacturing production grew for the seventh straight month in June, but input cost increases more than balance out higher prices.

Consensus estimates point to a 0.25% increase in Japan’s interest rates, although a more conservative 0.15% may eventuate.