May 5th, 2008

SGD: saw pullback through 1.3600 to 1.3585, next support at 1.3563 01May low; 1.3546 30Apr low; 1.3468 23Apr low
- PM Lee said country still on track for 4-6% GDP growth in '08 but susceptible to global slowdown
KRW: given down from 1012.5 high to 1009.5
HKMA cut discount rate by 25bps to 3.5% on Fed move
Thai inflation up 6.2%, mktexp 5.2%


South Africa:
Morgan Stanley has SA ranked 15 out of 20 on EM scale; to be more positive would need:
- ZAR to depreciate to 8.50 - 9.00 as currency risk of biggest concern
- need certainty that current hiking cycle is over
- evidence inflation is taken care of
- reduction in the c/a deficit
- Political uncertainty removed in terms of Zuma's court appearance which hasnt been factored in yet
- South African median house prices fell 8.6% in April as higher rates weighed on consumers