Welcome to the first issue of Asia Insights. This publication looks to answer some of the most frequently asked questions on Asian economic and financial market developments, and their investment implications in a succinct and clear way with the help of charts from our Guide to the Markets - Asia. In this issue, we address the following questions.
Asian central banks have been taking aggressive and creative actions to support their economies. Policy rate cuts and enhancing liquidity in their interbank markets are the basic measures adopted by most, if not all, of the central banks around the region.
Asian currencies have appreciated against the U.S. dollar (USD) somewhere between 2% and 9% since the USD index peaked in late March, yet this was short of the 10%-25% gain in G7 and European currencies.
Asia’s export growth momentum has waned, but the magnitude of the contraction was narrower than expected.
China reported a 3.2% year-over-year real Gross Domestic Product growth in the second quarter, signaling a resilient recovery from the pandemic shock.
China’s economic recovery is leading the rest of emerging markets (EM), as China’s real Gross Domestic Product (GDP) is expected to recover back to last year’s levels by the end of this year.
Even before the COVID-19 crisis spread across the world and dragged economic activity down to new lows, India was already seeing a deceleration in growth due to the effects of a liquidity squeeze.
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