"EM Asia bonds will get sold off based on the fact that Yellen's thesis of allowing inflation will cause global bonds to reprice in the future inflation premium," said Stephen Innes, senior FX trader for FX broker OANDA in Singapore. "With the solid growth differential offered in EM Asia, I think the sell-off will be short-lived. Still, we need a constructive policy direction from the Fed," Innes said. The U.S. central bank needs to guide the market to December lift-off and stop with theoretical concepts, which have been confusing investors, he said.
As Thais begin a year of mourning for their king, parties and celebrations will be toned down, particularly over the next month, temporarily crimping consumer and tourist spending in an economy that has been struggling for traction in recent years. "Thailand will not only be entering a period of mourning, but one of dynamic changes and political uncertainty," said Mark Mobius, executive chairman of Templeton Emerging Markets Group. "Under such circumstances, market observers will be looking out for potential issues over political friction and royal succession, and investors should be prepared for volatility. In the long run however, we believe the market uncertainty will ultimately be outweighed by Thailand's strong fundamentals," he said. REUTERS
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.