Jon Harris, Regional Head, Research, BNP Paribas Securities said that the Fed may cut the rate by 25 bps in September and it will be positive for the sentiments of the investors. But he said that Fed will not go in for a 50 bps cut. He is expecting some more negative news coming out of the US and Europe before the Fed meet.
He further said that near term fundamentals in Asia are supportive and the balance sheet is in reasonable state. However, Asia is not immune to the US slowdown. He is looking for domestic consumption plays rather than export plays in Asia. He said that he will remain invested as the near term fundamentals look supportive but advised that it will be a wise move to shift portfolio to focus on domestic plays. The markets in Asia will react negatively if Fed does not cut rate, he believes.
He further said that near term fundamentals in Asia are supportive and the balance sheet is in reasonable state. However, Asia is not immune to the US slowdown. He is looking for domestic consumption plays rather than export plays in Asia. He said that he will remain invested as the near term fundamentals look supportive but advised that it will be a wise move to shift portfolio to focus on domestic plays. The markets in Asia will react negatively if Fed does not cut rate, he believes.
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