Lehman says that Fed cut is less to do with economic growth, dealing with credit issues. It further said that it would not damage to Asia despite global Collateralised debt obligation, all one could see is structured investment problems. Genuine demand and under owned Asia will spur markets in short term. Genuine demand & under ownership triggers are for Asian markets.
Lehman pulls out cash from china & invests in hongkong since property stocks are looking attractive. At the same time they are looking at Thailand and Malaysia. They are eyeing some Indian chemical companies and are going to invest in food. Some signs of inflation are coming in US, but Asia has cash. Lehman pulls cash out of china and has moved money to Hong Kong and less to Singapore, Thailand and Malaysia
It further said that era of raising rates may be over, except in china. Asian Banks will outperform. No more Rate hikes by central banks could be seen. Asian banks will out perform the western banks. Asian banks are very attractive than global banks. Thus one may see short covering in US markets to chase this rally.
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