Asia's Manic Friday

Friday was as eventful a day in Asian Equities market as any in recent times, certainly in 2013. First was the flash spike in China, with rumours suggesting false buy orders of size more than USD 1 bn taking the market up more than 4%. There were all kinds of rumours flying around, and I would rather avoid the details as I don't believe in talking about things which are plain speculation. And later in the day, Nifty crahsed more than 4%. There was nothing spectacular about the fall, it was just a slow and painful drift lower. Having opened down 1%, market kept falling over the day on relentless selling. Apparantly, without any specific news on the day, apart from some more restrictions from RBI a day ahead. 

As US prepares for tapering, economies in Asia are looking more and more in trouble. Last time we had such a scenario, the Asian crisis happened. Things aren't looking too good this time as well. Currencies most at risk include India, Indonesia, and Malaysia. I think a good time to short these currencies against DM market currencies.