Difficult 2016 for investors in Asia: Nomura

Singapore

NOMURA analysts believe that a difficult 2016 awaits investors in this part of the world as Asia's growth slowdown appears to be structural and there is a rising risk of a credit crunch because of rising US interest rates.

It believes that the US Federal Reserve will raise rates at next week's Federal Open Market Committee meeting and that the hiking trajectory thereafter will be very gradual, with only two more rises in 2016.

For stocks, the Japanese investment house has set an 8 per cent upside return for the MSCI Asia Pacific ex-Japan index and is "overweight" Korea, Taiwan, Philippines and India, and "underweight" Hong Kong, A…