Weekly Market Recap
Asia Pacific
23/11/2020
Week in review
Week ahead
- 23/11 – U.S. – Markit manu. PMI (prelim.)
- 23/11 – U.S. – Markit serv. PMI (prelim.)
- 25/11 – U.S. – New home sales
- 27/11 – JP – CPI
Thought of the week
Recently, 15 Asia-Pacific nations formalized the Regional Comprehensive Economic Partnership (RCEP), the world’s largest trade agreement. Totaling almost one-third of the world’s gross domestic product, the RCEP also marks the first time China has participated in a multi-lateral trade deal. The pact will lower, or even eliminate, tariffs on various goods and services between participating nations, further aiding the economic recovery from the COVID-19 pandemic. The International Monetary Fund expects the Asia-Pacific region’s average growth rate to return to 5% in 2021. Unfortunately for the U.S., the RCEP, by design, will make it tough for excluded countries to compete in Asia. If American exporters, workers and farmers are to also experience a solid rebound in growth rate, the Biden administration will likely need to engage in new trade deals or rejoin partnerships from which the U.S. has previously withdrawn. Therefore, investors should consider allocating to Asia in the near and medium term as the region continues to trend positively.
Total gross domestic product
USD trillions, 2019
Source: The World Bank; J.P. Morgan Asset Management.
Data available as at 19/11/2020.
All returns in local currency unless stated otherwise
Currencies’ return are based on foreign currencies per U.S. dollar. An appreciation of the foreign currency against the U.S. dollar would be positive and a depreciation of the foreign currency against the U.S. dollar would be negative.
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