In today’s briefing:
- Asian Currencies: Capital Flows To Offset Other Drags
- Asia Ex-Japan Funds: Vietnam Allocations Hit All-Time Highs
Asian Currencies: Capital Flows To Offset Other Drags
- Normalising current account balances in 2022 will exert a drag on Asian currencies save for the PHP, IDR and SGD.
- The likelihood of robust FDI inflows into Indian and perhaps Indonesian assets could limit depreciation pressures on both currencies. Robust FDI flows could help the MYR outperform.
- We expect relative underperformance in the INR and the IDR, and view the KRW, TWD, and SGD as likely outperformers.
Asia Ex-Japan Funds: Vietnam Allocations Hit All-Time Highs
- Vietnam allocations hit all-time highs in Asia Ex-Japan active portfolios.
- Still a minor allocation in absolute terms, it’s out-of-benchmark status makes it the 2nd largest country overweight.
- Vietnam Dairy Products is the most widely held stock, otherwise investment is spread lightly across a dozen or so stocks, invested in by 2 or 3 funds.
Before it’s here, it’s on Smartkarma
