Just a month emerging Asian assets have
gone from a buy to sell and there could Be more pressure to come MSCI GM Asia
just capped its biggest monthly decline Since September, dropping below its 200
day moving average. This could actually signal more weakness
ahead. Asian government bonds also posted the
worst month since September. Higher U.S.
yields have lured the funds away from Developing markets.
In fact, overseas investors are pulled More than 400 million dollars from
Indonesian sovereign debt in February After pumping in a record 3 billion in
January. Really quite the reversal.
Asian currencies have also Underperformed broader ends.
The Korean one and Thai baht let the law Says most analysts don't see a recovery
just yet. Given how difficult it is to call the
peak in U.S. Rates, Goldman Sachs warns that E.M.
debt could face the same risks from last Year.
Still to wrap up on a more positive Note, there are hopes that more stimulus
measures from China's upcoming National People's Congress could give a much
needed boost to emerging Asia.
