Adrian Mowat, Chief Asian and Emerging Markets Equity Strategist, JP Morgan, sees signs of stabilization in developed economies and acceleration in emerging market economies led by China. "China was the first big country to move to pro-growth policies. We have seen major emerging markets move to pro-growth policies." He advices investors to get into early cyclical markets like Korea and Taiwan, sell defensives and get into building materials. "Some cement stocks are doing really well in India and China at this point."
The US Federal Reserve released the methods it used to conduct stress tests of the biggest US banks, but stopped short of any details that signalled how much new capital regulators will demand. Commenting on the same, Mowat said the stress test is applicable on top 19 banks but the real problem in mid-tier banks. "I think investor focus will be on the actual results of the stress test, which was almost a non event for US markets. I am intrigued by the market’s under reaction to the stress test."
Source: m o n e y c o n t r o l . c o m
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