Asia This Day:India Craves Growth;US Default Impacts

Tapering will have an impact globally,and India cannot escape,said Chandra Kochhar,CEO of ICICI Bank.India's growth rate has come down 4.5%.We have to take India's growth rate back.If we don't,investors will stand there waiting for growth to come back.*
There's a virtuous cycle that can start if you bring the growth rate back.The investment story has fallen off currently.We need to make sure projects are approved and the approval is constant,and not withdrawn,Ms.Kochhar advised.*
India's trade with the US was 92.5 billion dollars last year.*
Japan,Indonesia and Hong Kong markets are closed today for holidays.The MSCI Asia-Pacific index fell 0.14% in early Monday trading on more than estimated Chinese consumer price inflation,and less than estimated Chinese exports,as well as the US debt impasse.In Australia,stocks were also hurt by Oz Minerals cutting its full year output forecast and the recent decline in gold prices.*
India's Nifty Fifty futures index was down 0.13%.*
Japan holds 1.14 trillion of US Government debt.Finance Minister Tara Aso said Treasury Secretary Jack Lew and the US Government has an understanding of what default would mean;but we must question whether Congress does.Nonetheless,we expect an agreement to be reached.*
The consequences of the US defaulting on its debt are just unthinkable,said Sacha Tihanyi of Scotiabank.What would happen?A massive risk-off event across the world.A massive outflow of funds from the equity and bonds space.Asian currencies would fare the worst.
It's a good idea to diversify away from the US dollar as the world's reserve currency the way China has called for,but they can't just wholesale run away from US Treasuries.Diversifying has to be a gradual process.
China's looking OK.I'm still constructive on the currency.The CPI inflation was food-driven.I'm not worried about that.Imports remain fairly robust-a testament to the health of the Chinese economy,Mr.Tihanyi observed.*
In sport,Sebastian Vettel of Germany won the Formula One Japanese Grand Prix at Suzuka City on Sunday,with Australia's Mark Webber second,and Romain Grosjean of France third on the podium.
The Sime Darby LPGA Malaysia in Kuala Lumpur was won by American teenager Lexi Thompson,18,while China's Shanshan Feng was second,and Suzanne Petterson of Norway finished third.*
Bank of Nova Scotia(BNS)