Pesek’s View From Asia – Bloomberg 08-02-13

Salient to Investors:

William Pesek writes:

Former George Soros advisor Takeshi Fujimaki  said Abe delaying increasing Japan’s sales tax would worsen Japan’s debt profile, while Fed tapering would cause a fresh credit crunch that would slam Japan’s bond market.

When Li Ka-Shing, Asia’s richest man, is turning to Europe as Hong Kong property slumps you know things are bad in the greater China region.

Philippine bonds are rallying on speculation Moody’s will be the last of the three major rating companies to elevate the nation to investment grade. Markets are responding to resilient Philippine growth, an improving fiscal profile and a current-account surplus.

India is in a currency crisis. Societe Generale and Macquarie Bank are betting on new lows for the rupee and desperate measures by the central bank to tighten the cash supply. But saving the rupee will slam an economy already expanding at the slowest pace in a decade.

China getting unique help from the World Bank indicates China is keeping an open mind by reaching out to an institution often seen as an extension of the US Treasury Department, and is not just good for markets, but all of humankind.

Read the full article at  http://www.bloomberg.com/news/2013-08-02/pesek-s-view-from-asia.html

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