only in today's market mood could the
words gradually cautiously and probably
we thought hawkish Janet yellen's Ray
Price hints made last Friday was still
enough to weaken emerging market
currencies in Asia on Monday but local
equity markets however managed to shrug
back news aside once again the feds move
highlights or rather adjust its comments
highlight the struggle to balance global
macro with local conditions in emerging
Asia views on global emerging markets or
am still tend to the heavily negative
while currencies are bearing the brunt
of this analysts say they find little
interest in any bullish trading ideas
and there are periodic reports of net
outflows from bond and equity funds if
it isn't the impact of weak commodity
prices on already slowing economic
growth then it's the debt hangover that
follows a multi-year credit binge net
net am Asia actually gains from weaker
commodity prices because Indonesia aside
it is a net importer credit meanwhile is
more of a risk for both businesses and
households in the region following years
of easy borrowing and yet there is still
a bullish case to be made for companies
in the a.m Asia leverage is high but
seems to have peaked margins are
studying and a decline in return on
equity appears to have bottoms according
to a study a new one by hsbc ROA
improvements are says the bank being
held back by regional tendency among
executives to hoard cash this now
accounts for eighteen percent of total
assets are from twelve percent three
years ago at least inefficient company
stuffed with cash have some easy room
for improvement current earnings
expectations are hardly excessive either
after years of starting with earnings
per share growth of ten percent plus
each year then revising lowers and
numbers come in and disappoint analysts
have swung the other way they're
forecasting just three percent growth in
asia excluding japan earnings for this
year last week global emerging markets
began to reform outperform developed
world equities for the first time in
three months now near-term performance
will continue to depend on the car
and the actions of Magellan and the
Federal Reserve but probably investors
gradually and with caution of course
should consider the e/m world more
carefully starting with Asia