The United States Federal Reserve is expected to begin tapering its asset-buying program in March next year, rather than next month, Andrew Tilton, chief Asia Pacific economist of Goldman Sachs, said Monday.
Tilton said Fed officials are planning to keep interest rates unchanged until the unemployment rate falls below 6 percent from a previous target of 6.5 percent. This implies any increase in interest rates will not happen until early 2016, he said.
Meanwhile, Hong Kong’s benchmark Hang Seng Index could gain 12 percent in 2014, Kinger Lau, regional and Hong Kong strategist of Goldman Sachs, said. The increase will be driven by optimism over mainland stocks such as banking and oil.
Lau expects the mainland’s information technology sector and Macau’s gaming market to be the top picks by investors on the back of strong earnings in the past three years.
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