© 1982-2022 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial
STIR

RBC Looking To Enter IRZ2/Z3 Flattener

KRW

1 month USD/KRW Back Sub 1290 ​​

JGB TECHS

(U2) Off Lows, But Still Fragile

AUSSIE BONDS

Late Overnight Levels Prevail

Real-time Actionable Insight

Get the latest on Central Bank Policy and FX & FI Markets to help inform both your strategic and tactical decision-making.

Free Access
Trending Top 5
Topics

Stagflation Risks Surging in Asia, CNY Weakness Weighing on Asia FX

EMERGING MARKETS
EM Bulletmarkets-real-timeFixed IncomeBulletMarketsEmerging MarketsForeign Exchange

Executive summary:

  • We saw that inflation has started to surprise positively also in Asia/ SE Asia after remaining ‘quite low’ in 2021, which could push policymakers to adopt a more hawkish stance to avoid political uncertainty and social unrests.
  • With inflation expected to remain elevated in EM economies and the economic activity expected to decelerate, stagflation concerns have been surging. Historically, stagflation has been the worst environment for equities.
  • CNY weakness also leaves EM FX (especially Asia FX) vulnerable in the near term.


Link to full publication:

Keep reading...Show less
176 words

To read the full story

Why Subscribe to

MarketNews.com

MNI is the leading provider

of news and intelligence specifically for the Global Foreign Exchange and Fixed Income Markets, providing timely, relevant, and critical insight for market professionals and those who want to make informed investment decisions. We offer not simply news, but news analysis, linking breaking news to the effects on capital markets. Our exclusive information and intelligence moves markets.

Our credibility

for delivering mission-critical information has been built over three decades. The quality and experience of MNI's team of analysts and reporters across America, Asia and Europe truly sets us apart. Our Markets team includes former fixed-income specialists, currency traders, economists and strategists, who are able to combine expertise on macro economics, financial markets, and political risk to give a comprehensive and holistic insight on global markets.

Executive summary:

  • We saw that inflation has started to surprise positively also in Asia/ SE Asia after remaining ‘quite low’ in 2021, which could push policymakers to adopt a more hawkish stance to avoid political uncertainty and social unrests.
  • With inflation expected to remain elevated in EM economies and the economic activity expected to decelerate, stagflation concerns have been surging. Historically, stagflation has been the worst environment for equities.
  • CNY weakness also leaves EM FX (especially Asia FX) vulnerable in the near term.


Link to full publication:

Keep reading...Show less