Asia Pacific
TPP’s Demise Signifies Wider US Weakness in Asia
The Trans-Pacific Partnership’s (TPP) future is hanging in the balance. Although most involved will not lose out much if the deal falls through, some will forgo significant economic benefits. The deal will likely be replaced by a Chinese variant, which points to the larger demise of US influence in Asia, and China’s growing political clout rise in the region.
29 Nov 2016
Miner’s Canary of FI Consolidation in Kenya: Mauritius’ SBM to Acquire Fidelity
SBM’s acquisition of Kenya’s Fidelity Commercial Bank Ltd. shows there is plenty of interest among foreign lenders in Kenyan equity, but the symbolic one dollar price indicates that smaller entities are still under threat.
24 Nov 2016
Welcome Chinese SOE Reform Could Face Hurdles
China is soon to list which state-owned enterprises will undergo restructuring as part of the country’s ongoing reform plans. Although the plans are designed to increase the SOEs’ competitiveness against their foreign counterparts and free up capital to other parts of the economy, implementation could prove harder to see through, with consequences of the late 1990s state-sector reforms still…
24 Nov 2016
Copper Rallies as Markets Price in US Infrastructure, China’s Growth
Copper has been one of the top-performers in commodities markets this month. While investors agree its value has overshot, they still expect to see demand strengthening relative to supply in the next five years.
21 Nov 2016
Malaysian NDF Ban Reinforcement Puts Investors on Back-Foot
Malaysia’s Central Bank recently began reinforcing a ban on offshore Malaysian ringgit trades in a bid to improve monitoring and management of an already battered currency. Some analysts believe the move, which comes at a time when EM sentiment is already quite fragile, may threaten foreign fixed income investment and FDI in the country.
18 Nov 2016
Bonds Rally despite India’s “Inconvenient” Currency Ban
Millions of people are still queuing up at Indian banks to exchange their now worthless 500 and 1000 rupee notes one weak after Prime Minister Modi surprised markets with a controversial ban on large-denomination notes. Nevertheless, the country’s local debt market has been one of top global performers in the days since the ban was imposed.
16 Nov 2016
Rising Capital Outflows in China Threaten Snowball Effect
The world’s second largest economy continues to haemorrhage cash amid investor concerns that a planned currency devaluation could escape the control of the authorities.
11 Nov 2016
Indian Banks to Issue Masala Bonds Despite Pressured Finances
The Reserve Bank of India’s decision to allow Indian banks to issue masala bonds is likely to lead to a new flow of issuance despite these lenders facing high NPL ratios and strained liquidity from legacy loans. Whilst the proceeds are likely to be used to boost capital to conform with the implementation of Basel III, the RBI is looking to coax its banks back into financing infrastructure.
8 Nov 2016
Japan remains on the fence regarding investment in Russia
The Japanese government has been pushing for tighter economic ties with Russia ahead of landmark territorial talks between the two countries’ leaders in December, but although there is interest in Russian assets from Japanese lenders, mixed signals from JBIC are likely to hamper investment opportunities.
3 Nov 2016
Asian economies ride high despite banking sector concerns
Global economic growth is faltering, but Southeast Asia remains one of the few regions with a largely positive outlook. The Association of Southeast Asian Nations (ASEAN) states continue to grow at a rate above the global average, but rising debt levels and an underperforming banking sector could undermine their progress.
7 Oct 2016