Asian markets to lose lustre in 2007?

27 February 2007

Markets in Asia may appear less attractive to investors in 2007, according to a report from Citigroup analysts.

The report suggests that the period of boom in Asia will slow down to an average rate of 7.6 per cent, with the risk of political turmoil identified as the cause of the markets' lack of lustre.

China - expected to have a GDP growth rate of ten per cent - is likely to suffer only a small downturn, while the Singapore market is anticipated to slow down slightly more significantly, after double-digit returns over the last three years.

Meanwhile, the Malaysian market's growth is expected to be low, even though improved infrastructure and exports will act as a bulwark against a dip in consumption.

The Citigroup report comes at a time when speculation is rife that the US investment banking giant will up its stake in scandal-hit Japanese bank Nikko Cordial from 4.9 per cent to 33.4 per cent to offset the damage of a slew of resignations after fraud was uncovered.

Become a bobsguide member to access the following

1. Unrestricted access to bobsguide
2. Send a proposal request
3. Insights delivered daily to your inbox
4. Career development