Monday, September 2, 2013

$FXI Worst of Crisis Over for Asian Emerging Markets, Nomura Says

$FXI Worst of Crisis Over for Asian Emerging Markets, Nomura Says

A gauge of Chinese manufacturing index rose to its highest level in 16 months in August as new orders jumped, adding to evidence that growth in the world’s second-largest economy is strengthening after a two-quarter slowdown, according to a government report over the weekend. The Philippine economy expanded by more than 7 percent for a fourth straight quarter in the three months to June, a separate report showed.
The positive outlook for Asian emerging markets provides an opportunity for Nomura outside Japan, Ashley said. The number of Nomura clients in Asia excluding Japan for the global markets division doubled in the past three years, he said.
Since taking on his role in December last year, Ashley, 46, has pushed to integrate the bank’s 1,800 sales and trading staff from equity and fixed income. There are now trading floors handling multiple asset classes in London, New York and Singapore, he said, with the one inHong Kong to be set up by the end of the year.

Closer Collaboration

“The closer collaboration between fixed income and equities is actually indicative of closer collaboration with all of the other Nomura divisions -- retail, asset management, wealth management,” he said.
Ashley’s view contrasts with Stephen Jen, co-founder of hedge fund SLJ Macro Partners LLP, who has said more losses are likely for emerging markets because investors will withdraw funds as the Fed pares stimulus. About $44 billion has been pulled from emerging-market stock and bond funds globally since the end of May, data provider EPFR Global said on Aug. 23.
The Indonesian rupiah and the Jakarta Composite Index plunged by the most in five years in August after the Southeast Asian nation’s current-account deficit climbed to a record, economic growth slowed and inflation accelerated. The Indian rupee fell to an all-time low last month after the country’s current-account deficit widened to an unprecedented $87.8 billion in the fiscal year ended March.

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