Concerns over a slowdown in the world’s second largest economy sent Asian stocks lower on Tuesday, but market watchers expect monetary easing around the world and in China to help renew the region’s bull run, with mainland stocks among the big gainers.
“This [China’s growth target of 7.5 percent] is political posturing in a very political year - I don't think it's a major issue for the markets. Markets are just having a breather at these levels before we have them at the next leg of the bull market,” Kerry Series, Founder & CIO at Eight Investment Partners said.
According to Series, once the MSCI Asia Ex-Japan Index, hits the 500 mark, which is about a 14 percent upside from current levels, the market will move to “new levels”.
“In January and February, investors took the MSCI Asia Ex-Japan Index up to 450, we need to get back up to 500 to get to the position where we were before the sell-off in August and September last year,” he said.
Easing to Feed Bull Market Series believes the bull market will be fed by easy monetary policy globally. “China has now joined the group of governments that are easing. Once we get the inflation number out on Friday, we'll then see more aggressive easing from China, so globally central banks are providing the feed [for a bull market],” he said.Page 1 of 4 | Next Page