Western Asset’s Lian Favors China’s Yuan and Singapore’s Dollar

Chia Liang Lian, Singapore-based head of investment management for Asia excluding Japan at Western Asset Management Co., spoke at a forum today about the outlook for Asian markets and monetary policy.

On Asian debt and currencies:

“It’s interesting that the Korean won, the Malaysian ringgit, and some other currencies such as the Philippine peso are considered risky assets when fundamentally elements of these countries are superior to the U.S. We are quite convinced about superior fundamentals in Asia. Asian debt remains under- appreciated.

“Our recommendation is staying defensive and staying nimble. My general sense is that the next three months are going to be somewhat downbeat, bearish but in a year from now when we next meet, my suspicion is that we are perhaps a happier audience.

“In terms of specific currencies, the yuan and the Singapore dollar are appropriate from a fundamental perspective.”

On policy outlook:

“I’m personally surprised by the move in Indonesia. I didn’t expect Indonesia to ease. Perhaps with the exception of India, I think we are probably done with monetary tightening.”

To contact the reporter on this story: Kyoungwha Kim in Singapore at kkim19@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net