Uncertainties haunt Asian markets.
According to Mr Herve Lievore, Senior Marco and Investment Strategist, HSBC Global Asset Management, tighter liquidity in China might drive global funds out of the region. This is especially likely as there is a lot of uncertainty about the impact of QE tapering. Slower growth in Asia is related to the stagnation in global trade since the beginning of last year.
Lievore noted that assuming the exit of QE policies has no significant impact on the recovery process, the US will again become a key driver of global growth. A lot of hope is being attached to acceleration in US growth next year. Demand for Asian exports will also rise with stronger domestic demand in the US.
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