Trade War/Basketball Battle/Tax Reform/WMPs/Pork

Deputy Chief Economist

Sharmila Whelan

Independent and original Asian investment research

Aletheia Capital

Aletheia Capital (HK) Ltd. (previously known as Asianomics) combines the extensive knowledge of its experienced team with technology and regulatory changes to disrupt Global Markets business in Asia. The firm is completely independent with no conflicts of interest either on Investment Banking advisory or Capital Markets execution.

Macroeconomics

<p>The recent data flow out of Asia has been weak whether it be Chinese industrial output, fixed investment or retail sales, Hong Kong tourist arrivals, Japan’s latest Tankan Survey, Asian October manufacturing PMIs or Korean October trade data. The Asian business cycle has not been derailed, however.  Fundamentals are supportive of the upswing continuing.  Asian corporates are underleveraged and cash rich.  Household balance sheets are healthy.  There are no glaring structural imbalances which would reduce the effectiveness of counter macroeconomic policy easing measures. Importantly unlike many of their counterparts in the developed world, Asian governments and central bankers have the scope to use the monetary and fiscal policy levers to stimulate their domestic economies. Read on.</p>

The recent data flow out of Asia has been weak whether it be Chinese industrial output, fixed investment or retail sales, Hong Kong tourist arrivals, Japan’s latest Tankan Survey, Asian October manufacturing PMIs or Korean October trade data. The Asian business cycle has not been derailed, however.  Fundamentals are supportive of the upswing continuing.  Asian corporates are underleveraged and cash rich.  Household balance sheets are healthy.  There are no glaring structural imbalances which would reduce the effectiveness of counter macroeconomic policy easing measures. Importantly unlike many of their counterparts in the developed world, Asian governments and central bankers have the scope to use the monetary and fiscal policy levers to stimulate their domestic economies. Read on.

MSCI AC Asia ex Japan Index (MXASJ INDEX)

DSP BlackRock Liquidity Fund (DSLQYDG IN)

Asian Resilience - Lies In Its Structural Strength