— This is the script of CNBC's news report for China's CCTV on January 27, Thursday.
Hello and welcome to the CNBC Business Daily. I', Li Sixuan at the Singapore Exchange.
Asian markets started the trading week in the red.The MSCI Asia Pacific Index plumbed near a 4-and-a-half month lowas a confluence of factors weighed on sentiment.Emerging Asia assets came under pressure and selling in currenciessuch as the Indonesian Rupiah, Thai Baht, Filipino peso andMalaysian ringgit intensified.
Also adding to the gloom, tightening credit conditions in Chinaraised fears of a sharper economic slowdown.But the experts we spoke to earlier see long-term potential inthese markets.Have a listen.
(SOUNDBITE - Gary Dugan, CIO, Asia & MiddleEast, Coutts) You look at the GDP numbers this year, you stillsee a significant growth premium for emerging markets, the level ofindebtedness for emerging markets are significantly below those ofdeveloped markets, so if I am looking for something to buy, I dobelieve the emerging markets, the selloff, is a buying opportunity,not something that you run from.
(SOUNDBITE - JonathanCavenagh, Senior FX Strategist, Westpac Institutional Bank) Ithink in the near term, the risks are that we see the USDstrengthen pretty much uniformly across the board against most ofthe EM currencies. Of course, the problem for emerging markets herein Asia is that one often distinguishes Asia from other EMcurrencies as we'd seen in stronger resilient background coming outof China. That is no longer necessarily the case so now all of theEM is now painted with the same brush.
(SOUNDBITE -Todd Elmer, Currency Strategist, Citi) When we look at a lotof what's happening in EM, these are isolated political instancesin places like Argentina and Thailand. They're not necessarilysystemic issues. Many of these countries are better positioned toultimately deal with flare-ups or shocks than has been the case inthe past. So I would still say that over time, this isn't going toupset a constructive environment for investors.
The market selloff unlikely to sway the Federal Reserve from itstightening bias when it concludes its 2-day policy review onWednesday.Bernanke and company expected to taper their bond buying plan byanother 10 billion dollars, and reaffirm their commitment toultra-low interest rates. Whether emerging market assets will take that in stride remains tobe seen.
And that was your CNBC Business Daily, thanks forwatching.
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