High energy prices seriously threaten Asia's economic prospects - Barclays - Forbes.com
High energy prices seriously threaten Asia's economic prospects - Barclays - Forbes.com: "The continued surge in oil prices will start eroding the external payments position of Asian countries, with South Korea and India deemed as particularly vulnerable, and strongly undermines the growth potential of the region, a Barclays official said on Monday.
'Energy prices are driving a lot of what's going on,' he said.
If oil prices were to pull back below $100 a barrel, then 'all will feel like a bad dream,' Barclays (nyse: BCS - news - people ) Capital head of emerging markets research Peter Redward told reporters at a briefing.
Barclays has a bearish outlook on Asia, with an 'underweight' rating on all its asset classes, from equities to fixed-income and currencies.
With oil prices above $100 a barrel, the only countries in Asia that will likely post trade deficits are Korea and India and this will exert pressure on the won and the rupee, said Redward.
The U.S. dollar-won may hit 1,200 this year and the dollar-rupee may hit 46, he said."
'Energy prices are driving a lot of what's going on,' he said.
If oil prices were to pull back below $100 a barrel, then 'all will feel like a bad dream,' Barclays (nyse: BCS - news - people ) Capital head of emerging markets research Peter Redward told reporters at a briefing.
Barclays has a bearish outlook on Asia, with an 'underweight' rating on all its asset classes, from equities to fixed-income and currencies.
With oil prices above $100 a barrel, the only countries in Asia that will likely post trade deficits are Korea and India and this will exert pressure on the won and the rupee, said Redward.
The U.S. dollar-won may hit 1,200 this year and the dollar-rupee may hit 46, he said."
posted by atish.babu at 7/08/2008 05:53:00 PM
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