Asia likely to perform in line with global equities and not outperform, said Steve Brice, a chief investment officer of Standard Chartered Wealth Management, on Friday, adding that “still bullish on the Indian market but not expecting it to outperform”.

In an interview to CNBC-TV18, Brice said, “Asia, we expect it to perform broadly in-line with global equities, not outperform. A big headwind is the dollar strength; we have seen a range-bound dollar in the first four weeks, but last week it started to bounce and made a new high. So that is a headwind for emerging markets generally including Asia ex-Japan equities.”

“India will rank alongside China. We are seeing a range-bound market at the moment, so still bullish on the Indian market but not expecting it to outperform global equities and therefore we still prefer Europe and the US,” he said.

Also Read: Market volatility to return; US equities to outperform: Standard Chartered

He believes that financials are doing well in Europe and the tech sector will start bouncing back in the US.

Also Read: Overweight on global equities, neutral on India: Standard Chartered Wealth

Talking about inflation, he said, “We still looking for inflation to remain relatively elevated. So we do expect inflation to come down this year in the US and elsewhere in the world, but that’s going to be a gradual phenomenon.”

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First Published:Jan 28, 2022 10:15 AM IST