Global Market Outlook 2019 - Emerging Markets in Asia
Emerging markets in Asia have dominated the newsflow in 2018, given the backdrop of the US-China trade war, quantitative tightening and mounting debt issues.
In this episode, our Portfolio Managers Teera Changpongsang and Hyomi Jie share their 2019 outlook for emerging markets in Asia.
While trade-war oriented concerns could prevail for the next few months, consumption-led opportunities should benefit from the ongoing structural shifts in China.
As personal incomes continue to trend upwards, Chinese consumers are likely to demand a better and wider range of products and services. The ongoing integration of technology into consumer behaviour, and product and service delivery, is also structurally altering consumption in China.
When it comes to emerging Asia, these markets are structurally different from those like Argentina and Turkey. Current account balances in Asian economies have improved notably over the last 20 years and external debt levels are also more manageable.
Asian corporates also look to have learnt from the Asian Financial Crisis about how important it is to maintain conservative leverage.