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Analyst expecting tech stock thrust

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Technology plays are expected to lead a rally in Asian stock markets next year, spurred by interest-rate cuts in the United States.

'When the Federal Reserve cuts rates the most money is going to be made in Asian technology,' S G Securities global equities analyst Bijal Shah said.

'The first rate cut could be as early as next quarter.'

He said cuts in the benchmark federal funds rate would be made in response to rising US unemployment. There were already signs of the economy slowing, with a slump in new orders for manufacturing companies in response to previous increase in interest rates.

'The US economy is slowing - it is slowing quite rapidly,' Mr Shah said.

Worries about the slowing economy were also causing US company directors to sell down their holdings.

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