Markets drop as EM woes come together
But observers say economic growth environment still positive, no contagion
[SINGAPORE] Asian markets took fright yesterday, led by declines in Japan, Hong Kong, India and Indonesia, while European markets also dipped. Selling pressure came from a correction in US stock markets last Friday.
Observers said that sentiment about emerging markets remains poor because of country-specific, non-systemic concerns: currency volatility in Argentina and Turkey, a political crisis in Thailand, unrest in Ukraine, and current account and fiscal deficits in countries such as South Africa and Indonesia. In China, concerns over growth and financial stability predominate.
Markets are also awaiting the outcome of a US Federal Reserve meeting later this week. If the Fed decides to cut back more on its bond purchases, higher yields for US bonds will put further price pressure on emerging market bonds.
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
New Articles
Strong demand for ECs could spur competition for Pasir Ris GLS site
Singapore’s STT GDC to co-develop US$420 million data centre in Vietnam
10 terrific 2022 Beaujolais to drink now, or in a few years
Eurozone home loan stress ‘manageable’ despite high rates, says ECB
Cordlife to cancel private placement; MOH stresses importance of local directors
Sasseur Reit posts 1.2% rise in Q1 rental income; changes to semi-annual distributions