Insights

Investment Insights by our experts and thought leaders

We forecast that Asia Pac ex Japan, Japan and Europe will outperform in the next six months, while the US should underperform and, thus, deserve an underweight stance vs. all other regions.

India: Modi Mania

Our investment management teams have again come together to update their views given new developments in India.

Asian Fixed Income Monthly Outlook - December 2015

US Treasuries (USTs) yields ended the month higher. October non-farm payrolls indicated a surge in job growth, keeping the US Federal Reserve (Fed) on course for a possible rate hike in December.

Asian Equity Monthly Outlook - December 2015

The MSCI Asia ex Japan Index fell 3.4% in USD terms, underperforming MSCI AC World Index. Malaysia, being the only net commodity exporting country within the Asia ex Japan region, was the only market which proved positive returns (in USD terms) in November, aided by strong currency.

Japan's revised GDP: No Recession as Inventories Finally Realistic

Looking forward, even though inventories were revised higher, their long depletion means they remain far too low in my view, and should continue start to rise significantly in the quarters and years ahead.

Divergent monetary policy in US and Europe: Can it last?

As we enter 2016, we believe the divergent monetary policy theme will continue -- with the major risk to global bond markets and Fed rate rises continuing to be Europe.

The Japan Update – The Japanese Government’s Objectives for TPP

A framework agreement for the Trans-Pacific Partnership was reached in October 2015, and the governments of participant countries are working to ratify the agreement and formally launch the partnership.

With the aim of significantly liberalizing trade within the Asia-Pacific region, and thereby boosting trade and investment among the region's countries, a framework agreement for the Trans-Pacific Partnership (TPP) was reached in 2015.

The Japan Update – Japan Inbound Consumption Continues to Grow

Inbound consumption by overseas visitors to Japan continues to grow. For the nine-month period from January to September 2015, such consumption totalled a cumulative ¥2.6 trillion (approx. US$21.7 billion), which already represents a higher amount than that for all of 2014.

What's to come? - China's RMB as a global reserve currency

The IMF's decision to include the Renminbi into the SDR is a major push for the RMB to become one of the world's major reserve currencies.

Australia: Lower GDP growth and CPI should mean lower 10-year bond yields

Our lead Australian fixed income portfolio manager discusses her intermediate-term outlook for the bond market “down under.”

Economic Disappointment in Japan Should not Worry Equity Investors

Once again, as has long been our view, disappointing macro-data should not worry investors in Japanese risk assets very much at all.

Asian Fixed Income Monthly Outlook - November 2015

Prices of the US Treasuries (USTs) ended the month lower. Risk-on sentiment prevailed for the most part of October, favouring risk assets over perceived "safe-haven" instruments.

Asian Equity Monthly Outlook - November 2015

The MSCI AC Asia ex Japan Index rose 8.0% in USD terms, broadly in line with MSCI AC World Index. All Asia ex Japan currencies except the Philippine Peso strengthened against the US dollar in October.

Asia ex-Japan Equities - Historic Price to Book Valuation buying opportunity emerges

Developed and emerging markets in Asia ex-Japan have clearly been under tremendous pressure in recent months, including redemptions of more than USD 50bn from the region in September, the heaviest ever witnessed.

Did ECB QE Jump-start Eurozone Earnings Like the US Experience?

We update our views on whether ECB QE has had a positive effect on corporate earnings.

Why the BOJ does not need to ease much, if at all

There are many reasons for the BOJ to defy consensus expectations for more easing.

Asian Fixed Income Monthly Outlook - October 2015

US Treasuries (USTs) registered gains in September. Yields initially trade in a tight range, but subsequently jumped mid-month, in anticipation of the announcement from the US Federal Reserve (Fed).

Asian Equity Monthly Outlook - October 2015

The MSCI AC Asia ex Japan Index was down 1.8% in USD terms in September which masked the volatility where the markets oscillated within a wide range of 10%.

Abenomics 2.0: Focusing on Women’s Participation

There is an admirable effort to improve the female participation rate, but it is too early to judge whether the measures will have a major effect.