Investment Insights

 

Maintaining Prosperity During Turmoil

Although the coronavirus outbreak has caused major disruptions and geopolitical risk is on the rise, markets are looking forward to recovery. In what appears to be a rapidly changing world, many things remain the same and indeed, may be changing for the better.

The Covid-19 pandemic has accelerated the adoption of internet-based healthcare services. Growing in importance, penetration and acceptance, telemedicine will revolutionise and augment Asia’s healthcare systems.

Japan Equity Monthly - September 2020

Yoshihide Suga, Japan’s new prime minister, is widely expected to retain his predecessor’s fiscal and monetary policies known as “Abenomics”.

Global Investment Committee Outlook: A new regime ahead

Clearly, it remains difficult to predict events in this volatile environment, but in the interest of our clients, we do our best and fortunately this time, we had virtually unanimous agreement on a similar scenario as in June, both politically and economically.

ASEAN equities: Uncovering opportunities in uncertain times

The price bifurcation of ASEAN equities this year caused by the COVID-19 pandemic is creating ample stock-picking opportunities for long-term investors. Read on to find out which markets and sectors in the ASEAN region that we have the highest conviction in.

Asian equity monthly – August 2020

Asian stocks posted gains for the third consecutive month, boosted by positive COVID-19 vaccine developments around the world, the persistently weak US dollar (USD) and resilient Chinese economic data.

Suga - Likely the most pro-Third Arrow reform PM in Japan’s history

Despite major improvements over the last two decades, some critics will always doubt the progress of economic reform in Japan.

Asian Fixed Income Monthly - August 2020

The US Treasury (UST) yield curve steepened in August. Yields initially traded in a tight range but experienced an abrupt rise mid-month, pushed higher by the uptick in the US July inflation readings and the US Treasury's outsized refunding announcement.

Multi-Asset Monthly - September 2020

Global economic data continues to improve and deliver positive surprises relative to pessimistic consensus forecasts. While this is undoubtedly good news, it cannot negate the fact that activity levels are still well short of pre-pandemic levels.

Internet companies have gone from strength to strength, dramatically outperforming the broader market year-to-date.

SugAbe-nomics

It does not seem that there are enough differences between Abenomics and the proposed economic policies of likely new Prime Minister Suga to justify the completely new portmanteau “Suganomics,” as a few analysts have suggested.

Japan Equity Monthly - August 2020

In late August the Nikkei made a full recovery from the "Corona shock" lows touched in March, amid initiatives by the government and the central bank.

Australian Fixed Income Monthly – August 2020

The Australian bond market (as measured by the Bloomberg AusBond Composite 0+ Yr Index) returned -0.42% over the month.

Australian Equity Monthly – August 2020

The S&P/ASX 200 Accumulation Index returned 2.8% during the month. Australian equities lagged most developed markets in August.

The Buffett fillip

Although it is fairly clear that Buffett’s investment is not just a passive one in that he intends to collaborate on business ventures with these trading companies, the fact that the world’s most famous investor has committed to such large sums has ramifications for both domestic and international perceptions about Japanese equities.

Japan’s Abe situation part 2

Many media reports are suggesting that Yoshihide Suga is leading the race to be Japan’s next prime minister, with a main question being whether he, without a large faction of his own, will just be a temporary placeholder for new leader.

Japan's Abe Situation

It is attention-grabbing for some analysts and soothsayers to speculate on politics, but this is no casual matter.

Asian equity monthly – July 2020

Regional markets enjoyed another bout of strong performance in July. Global market sentiment remained buoyant due to optimism about the development of a vaccine for COVID-19; upbeat earnings of big technology companies; and assurance from the US Federal Reserve (Fed) that monetary policies would remain highly accommodative in the foreseeable future.

Asian Fixed Income Monthly - July 2020

US Treasury (UST) yields traded in a very tight range, with the yield curve ending flatter in July.

Multi-Asset Monthly - August 2020

The global economic recovery is continuing, although at a marginally slower pace; this is to be expected considering the impact of the second COVID-19 wave on the US sunbelt.