While Asian markets are influenced by the prolonged wait for interest rate cuts in the US, the central banks in the region are seen to have very different objectives in the coming six months.
Amid macro uncertainty and slowing growth, PGIM Fixed Income’s emerging markets (EM) debt team aims to minimise vulnerabilities while selectively tapping opportunities across bonds, rates and currencies – a tried-and-tested approach that has also secured an AsianInvestor award.
Regional life insurers will seek to reweigh their portfolios to seek out sufficient returns in the low rate environment, reduce duration gaps and adapt to new capital rules.
In the latest Year of the Dog prediction question, AsianInvestor questions whether the US Treasury curve will invert, and herald a potential economic recession.
CLSA strategist Chris Wood notes the US Federal Reserve has been wrong on just about everything, adding QE is deflationary and is having the opposite effect to what was intended.