“China could introduce some kind of fiscal stimulus to help stabilize the economy,” Daphne Roth, head of Asia equity research at ABN Amro Private Bank, said in a Bloomberg article.
Moreover, with the markets expecting the Fed to maintain its accommodative measures, the easy liquidity is also fueling the resurgence in emerging market equities.
“While there’s a likelihood the Fed will start tapering monetary stimulus in September, we don’t expect the Fed to start raising rates until the end of 2014,” Roth added. “We remain overweight on equities.”
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Max Chen contributed to this article.