Peruvian equities and bonds are well positioned to outperform their EM peers, given strong economic fundamentals. First, inflationary pressures are relatively muted. Core CPI stands at 5.7% and is the lowest among major LATAM…
Indonesian equities have outperformed their EM peers since mid-2021, returning 30% in local currency terms (20% in USD terms). However, these relative gains are likely unsustainable. Our Emerging Markets strategists point out…
China’s property price declines are accelerating. The contraction in new home prices in Chinese 70 large and medium-sized cities widened to 1.6% y/y in October, compared with 1.5% y/y in September. Meanwhile, 70-city…
China is on the verge of experiencing a full range of deflation. Poor domestic demand will likely continue into 1H 2023 amid the ailing housing market, subdued private-sector sentiment and the zero-Covid policy, warranting a cautious…
Unlike other hydrocarbon economies in the Middle-East, UAE stocks are also leveraged to global growth conditions and interest rate dynamics, given the prevalence of non-oil plays and interest rate-sensitive sectors. The…
Despite Saudi Arabian stocks having outperformed their EM peers over the past couple of years, our Emerging Markets strategists argue that this bourse is due for a breather. Saudi fiscal policy is experiencing a major shift.…
Taiwanese export orders in USD terms contracted by 6.3% y/y in October, down from a 3.1% decline in the previous month and short of expectations of a milder decrease. Exports to China and Hong Kong drove the bulk of the…
Singapore’s non-oil domestic exports are sending a warning about global demand. They declined by 5.6% y/y in October, marking the first annual contraction since November 2020. In particular, non-oil exports to China, the…
BCA Research’s China Investment Strategy service concludes that although Chinese equity valuations are cheap, the breakdown in share prices below their long-term technical supports merits a vigilant stance. One of the…
The conditions for a sustainable rally in Chinese stocks have not been met. In this report we discuss the four signposts which we will closely monitor to gauge when it will be warranted to upgrade our stance on Chinese equities both…