TD Securities have noted that "as Asia's.......>

ASIA: TD Securities have noted that "as Asia's economies open up there are signs

of economic recovery, but most manufacturing PMIs remain in contraction. Asian

exports over the last two months have been extremely weak. Exports performance

has seen significant differentiation across the region. Asian exports are on

track for an average fall of at least 20% y/y in June after a 15.3% y/y fall in

the previous month. While any bounce may be tentative and shallow given ongoing

external weakness, there are signs that exports over the next couple of months

may at least be less negative. Throughout the last few months, tech exports have

been relatively resilient. There are signs of softening, however. The likely

tentative improvement (less negative, rather than positive) in exports in the

near term is unlikely to change the still weak outlook in the months ahead. The

soft trade backdrop will likely mean that Asian currencies will still need to

jostle for competitiveness, likely limiting further appreciation in the months

ahead."