The second half of 2019 is likely to be problematic for markets, said Paul Kitney, chief equity strategist at Daiwa Capital Markets, adding that equity as an asset class is expected to do well in the first half of CY19 led by emerging markets (EMs).

“In Asia, we would be overweight on emerging markets, in particular, Association of Southeast Asian Nations (ASEAN) and less positive on Korea and Taiwan...," he said.

According to him, rupee along with other Asian currencies is expected to be stronger.

On Indian market, Kitney said, “India scores on valuation but it scores extremely well on earnings growth which is well above the region at around 22 percent this year versus less than 10 for the region.”

“We see further scope for easier monetary policy this year because the policy rate is still well above inflation and given the outlook by the RBI around 2.8 percent this year, there is certainly scope for rate cuts,” he added.

According to him, the US economy will be in recession by mid-2020.