Infosys Technologies has come down a lot. We also like the multinational consumer play Hindustan Lever . We are underweight in Taiwan. The liquidity cycle that drives that market has peaked. While economic activity is recovering, the central bank's policies are changing.
Valuations are close to nine- year highs.
We think there will be more tension with China between now and presidential elections in March. Everyone is looking at U.S. interest rates. I don't believe they will rise 100 basis points over the next 12 months - we are looking at no more than 50 basis points. Apart from Hong Kong and China, Asia has floating currencies, so they will adjust. And I don't see current-account surpluses disappearing across the region over the next 12 months.