We remain relatively constructive on Asia ex‑Japan equities for 2023. The short-term setup for China and North Asia looks attractive: Valuations are at cyclically depressed levels, and the markets are very under-owned by global investors. We are seeing clear signs
How fast things can change: there was a major shortage of semiconductors at the start of the pandemic, and now the industry is grappling with too much inventory in parts of the supply chain. This has led to a sell-off
I am cautious on the Asian sovereign outlook due to tightening global financial conditions, weaker Chinese growth and rising regional inflation. Asian sovereign bonds are perhaps more resilient against these waves than many other regions due to the large pool
Economic intricacies and structural challenges are commonplace in Japan. But looking through the lens of individual companies shines a different light on the nation. In this paper, newly named portfolio managers of Capital Group Japan Equity strategy, Kohei Higashi and
Asian companies are navigating an increasingly complex landscape, from supply chain pressure to the shadow of delisting risk hanging over Chinese ADRs. In this series we take a look at how these companies are responding, and where opportunities may lie
Asia Macro: On March 27, Chinese authorities ordered a citywide lockdown in Shanghai. The lockdown was originally intended to take place in two phases, lasting eight days. However, things did not pan out this way. On April 9, the central
After months of heightened tensions between the Ukraine and Russia, the situation reached a turning point on February 22. Russian President Vladimir Putin signed a decree recognising the independence of Luhansk and Donetsk, paving the way for the invasion of
After a tough year for China’s property market, there have been recent signs that Beijing’s policy stance is now turning more supportive for the sector. Although a repeat of the massive stimulus of 2015/16 is unlikely, we now expect the
Key takeways Climate change commitments have stepped up recently but have yet to fully answer the call. National commitments should not constitute a limitation or constraint for a business entity to set ambitious net zero targets that are aligned with
On February 4, Beijing hosted the opening ceremony for the 2022 Winter Olympics. Global sporting events like this are usually a bonanza for the host country, attracting billions in investment and generating windfall revenues from tourists. However, this time round
On February 4, Beijing hosted the opening ceremony for the 2022 Winter Olympics. Global sporting events like this are usually a bonanza for the host country, attracting billions in investment and generating windfall revenues from tourists. However, this time round
On February 4, Beijing hosted the opening ceremony for the 2022 Winter Olympics. Global sporting events like this are usually a bonanza for the host country, attracting billions in investment and generating windfall revenues from tourists. However, this time round
De Aziatische bedrijfsobligatiemarkt is een strategische activaklasse geworden die behoorlijke inkomsten biedt. Cruciaal is dat het ook overwegend om investment-grade bedrijfsobligaties gaat. Obligaties met negatief rendement zouden een tijdelijk fenomeen zijn. Maar zeven jaar nadat ze voor het eerst opdoken
Executive summary Asia has already roiled the world with three waves of economic transformation. A fourth is now building, drawing on past strengths and adding new digital-age capabilities. By 2040 the world could look very different, with Asia representing half
Travel restrictions have remained in place in Asia, as markets in Europe and North America have gradually moved towards reopening over the summer. This took place even against the backdrop of rising COVID-19 cases. The justification behind …
Weekly investment update: The recent spikes in energy prices and US Treasury bond yields have strained emerging Asia’s asset prices and currencies. Rising commodity prices are worsening Asia’s balance of payments dynamics, putting the currencies of large oil-importing countries under
Market weekly: Emerging market equities offer investors a wide range of diversification opportunities across economies with a solid post-pandemic growth profile that include, but also stretch beyond, China and the wider Asian region. Quang Nguyen, head of global emerging market equities,
It has been more than a year since COVID-19 was declared a global pandemic. The start-stop lockdowns that followed the first wave of the coronavirus outbreak made it particularly tough for many businesses and individuals to adapt.
Key takeaways Regulatory and digital disruption have been headwinds to the financial services industry, but tech innovation offers opportunities for both new entrants and incumbents to survive and thrive. The rising wealth of Asian emerging economies, the growth in derivatives
Weekly investment update: The sell-off in stocks in China and Asia has further fuelled the bid for US Treasuries. This week, the market’s focus is the meeting of policymakers at the US Federal Reserve. The last few days have seen
Emerging Asia’s stocks and bonds have experienced a lost decade. In the past 10 years, their returns, in US dollar terms, have lagged those of global indices by a considerable margin. And that is despite the fact that these economies
Investors across the Asia Pacific region are becoming more selective in their asset choices, with long-term capital growth, diversification and sustainability playing key roles in where, why and how they allocate in 2021, according to an exclusive survey by AsianInvestor
This month Luca outlines the latest top-level asset allocation views of the Pictet Asset Management Strategy Unit as well as providing an overview of his team’s recent research project on Asia.
Market Weekly: On account of the region’s strong economic growth, Asia has a considerable impact on climate change, but at the same time is, perhaps disproportionately, exposed to its effects. That makes engaging with companies and working with the authorities
Tourism has been one of the sectors most affected by the COVID-19 pandemic. Governments worldwide imposed strict movement restrictions and closed borders in the hope of stopping the spread of the virus. According to the United Nation’s World Tourism Organization,
In April T. Rowe Price published an article named “Why ESG Factors Matter in Asia Credit Investing”. In the article, they discuss the upcoming importance of ESG factors when looking at Asian credit. T. Rowe Price expects that the ESG
Already mainstream in Europe, responsible investing is fast becoming a key consideration in Asia as well. The integration of environmental, social and governance (ESG) factors into investment decisions has gained recognition as an important method of downside risk management and a driver of risk‑adjusted returns. Looking specifically at credit investing, 60% of regional investors expect governance …
Asian equities peaked twice in the first quarter amid optimism over the recovery in China, the prospect of improved relations between the new US administration and China, and the arrival of COVID-19 vaccines. Zhikai Chen, head of Asian equities, argues the outlook for much of the region remains positive, even after a valuation-related stumble.
Asian equities rode high early in the year amid optimism over the recovery in China, the new US administration and improved relations with China, and the advent of vaccines. The outlook for investor flows into much of the region remains positive, even after a recent valuation-related setback. Zhikai Chen, head of Asian equities, discusses the prospects for the asset class this year.
Asia’s emergence as the world’s key engine of growth has been one of the most compelling investment stories in recent times. The newly launched Capital Group Asian Horizon Fund (LUX) (CGAH)1 is designed to tap into this attractive opportunity set and, in this Q&A, portfolio manager Christopher Thomsen explains why …
According to our forecasts, Asia1 is projected to lead the global economic recovery in 2021. On a GDP-weighted basis, the region is expected to expand by 6.6% this year, up from -1.0% in 2020 (Chart 1). Excluding China, Asia will expand at a slower rate of 4.7% in 2021, up from …
Een jaar nadat de Covid-19-uitbraak wijdverspreide sociale en economische problemen veroorzaakte, komt Azië sterker uit de crisis en heeft het continent een grotere invloed op de wereld. Het economische zwaartepunt van de wereld verplaatst zich dan ook gestaag naar het …
Why emerging Asian assets will grab a greater share of global investors’ portfolios. A year after the Covid-19 outbreak triggered widespread social and economic upheaval, Asia is emerging out of the crisis stronger and with greater influence on the world stage, pulling the globe’s economic centre of gravity steadily to the East.
Asia’s relatively effective pandemic control in 2020 has enabled a gradual normalisation of domestic demand. Asia remains the engine of global growth …
Webinar – Where next for markets – focus on Asia Register for a webcast with our Chief Strategist, Luca Paolini, where he centres his thoughts on Asia, and in particular China. Amongst other topics, Luca will cover: why investors are still
Webinar – What will be the key factors driving EM debt markets in 2021? With three quarters of developed market bonds currently trading at negative yields once adjusted for inflation, there is added impetus for investing in emerging market (EM)
China’s Digital Currency Electronic Payment (DCEP) system was proposed in 2014 and will be one of the first Central Bank Digital Currencies (CBDC) in the world. The DCEP was first tested in April 2020 within Shenzhen, Chengdu, Suzhou and Xiong’an New Area (Xiong’an). The pilot in Xiong’an is part of preparations for the 2022 Winter Olympics. The pilots may be expanded to cover several …
Executive Order banning trading in designated Chinese entities increases uncertainty on the horizon and reaffirms importance of diversification. Once characterized by mutual cooperation, the U.S.-China relationship has undergone a significant shift since the onset of the trade war initiated by
If I were to sum up Asia ex Japan equity markets in 2020, it would be the pain of negative headwinds followed by the triumph of human ingenuity and determination in rising above them. This perhaps seems too optimistic a
T. Rowe Price Insights on International Equities High‑quality growth businesses on reasonable multiples. Our views remain constructive on the medium- to longer-term outlook for Asia ex‑Japan equities. Even as global growth may be slower to recover than earlier hoped for,
Outlook If, like a modern-day Rip Van Winkle, you had magically slept through 2020 and then looked at the year-to-date credit returns, you might have thought: “Quite a boring year, then”. Dramatic selloffs have been largely retraced by equally dramatic
Capital Group New Perspective Fund (LUX) It’s been five years since Capital Group launched its New Perspective strategy in a Luxembourgdomiciled vehicle, giving investors in Europe and Asia access to a core global equity strategy with a successful 47-year track
In 2021, the IMF expects 8.2% y-o-y GDP growth for China, 6.0% for India, and 2.4% for Japan; COVID-19 is having a severe short-term impact on Asia, but the long-term impact should be small; Asian stocks look cheap compared to
Overview: The Asia region was the first part of the world to be hit by the Covid-19 outbreak, but it has also been the first region to navigate a way out of it, thanks to its good management of the
We believe the Covid-19 crisis will trigger a step-change in policy, accelerate existing trends and transform investment frameworks. Government intervention, fiscal activism, corporate governance and sustainability, and continued Asian economic strength will characterise this new order, creating …
Small, open economies such as Singapore, Vietnam and Malaysia are the most exposed to final demand from the US, Europe and China. This makes them the most vulnerable to the coronavirus growth interruption. Thailand and Hong Kong have the largest
White Paper It is telling that asset managers today closely monitor specific themes that would have seemed very niche just 20 years ago, such as the spending patterns of millennials in Asia. Why? Because Asian millennials' spending power has the
Investing Strategy Commentary Health Policy Remains the Key Aggressive action by the Federal Reserve has helped restore some liquidity and animal spirits to financial markets, while fiscal policy is starting to kick in despite cumbersome transmission mechanisms in some cases.
Webinar – Coronavirus: Navigating the Path Ahead in Asia Op donderdag 30 april organiseert Alpha Research samen met T. Rowe Price een Webinar met het thema: Coronavirus: Navigating the Path Ahead in Asia. Hiervoor nodigen wij u van harte uit. In dit webinar
Given the unprecedented scale of disruption caused by the coronavirus pandemic, which has shut down most segments of the global economy in ways not seen since the Second World War, investment models based on past economic slowdowns or macro theme-based
