Christopher Wong, who helps oversee $70 billion of assets at Aberdeen Asset Management Plc, commented on Asia’s emerging stock markets after China increased banks’ reserve requirements to lock up cash and cool inflation.
On the reaction in emerging stock markets:
In the “last couple of months there’s been a concern in terms of inflation. Like most things, they always find a flavor of the month. Although the inflationary issue continues, interest rates have been gradually increased and China has been the biggest proponent on that, in terms of increasing the triple R.”
On the attractiveness of emerging markets:
“With the strong performance in developed markets, you’re seeing valuations get dropped, narrowing as well, and potential QE2 being taken away, we will not be surprised to see interest coming back to emerging markets. But that’s pretty much a short- term view. From our perspective it’s been no change in terms of how we want to expose ourselves to emerging markets, toward domestic consumption.”
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