Goldman Sees KRW, THB & MYR Outperforming

China’s reopening is also likely to spill over into regional economies, and we have adjusted our EM Asia forecasts accordingly. Among the low-yielders of EM Asia, we think that KRW, THB and MYR can outperform: the Won should benefit from an improved current account outlook and equity inflows, the Baht can benefit from a tourist boost from China’s reopening, and the Ringgit should perform, given both its high sensitivity to the CNY, and the possibility that, among exporters, USD hoarders may turn into sellers. We think the SGD should stay firm near-term, but will gradually move back towards the middle of the band over the course of the year (from +1.3% above the mid-point of the SGD NEER currently), as the MAS is done tightening, in our view. And, among the low-yielders in EM Asia, we expect the TWD to underperform, given geo-political uncertainty and risk of further equity outflows. Among the higher-yielders of EM Asia, we expect IDR to outperform, while the PHP and INR should underperform on a negative BBOP outlook. Moreover, the PHP has already rallied significantly on aggressive BSP rate hikes, which is unlikely to be repeated.