EM stocks, including Chinese equities, tend to perform well during periods of stronger global growth, rising commodity prices and a weaker US dollar. However, a falling dollar index since April has failed to boost Chinese…
Feature Chinese stocks remain in limbo despite robust economic data in April and early May (Chart 1). Onshore equities are pricing in policy tightening risks and a peak in the domestic economic cycle. Meanwhile, a regulatory…
China’s Producer Price Index jumped from 4.4% y/y to 6.8% y/y in April, surpassing expectations of 6.5% y/y and suggesting that inflationary pressures are intensifying in the mainland. The speed of the rise is eye-catching…
Highlights The Singapore dollar has come full circle and has cheapened massively in real terms. This has boosted the economy’s competitiveness. The country is attracting record amounts of FDI inflows. This should benefit…
China’s trade surplus widened significantly in April, rising to $42.9 billion from $13.8 billion. Exports accelerated by 32.3% y/y from 30.6% y/y in March, marking a positive surprise to the anticipated 24.1% y/y growth…
Highlights US natural gas prices will remain well supported over the April-October injection season, as the global economic expansion gains traction, particularly in Europe, which also is refilling depleted storage levels. China's…
Highlights A slower money and credit growth in China will eventually generate disinflationary pressures by weighing on demand for commodities. The PBoC has shifted its inflation anchor and policy framework to target core CPI and the…
China’s official and Caixin PMIs sent contradictory messages in April. According to the NBS release, the composite PMI declined to 53.8 from 55.3 on greater than anticipated slowdowns in both the manufacturing and non-…
Highlights Biden’s first 100 days are characterized by a liberal spend-and-tax agenda unseen since the 1960s. It is not a “bait and switch,” however. Voters do not care about deficits and debt. At least not for now.…
Highlights Rising CO2 emissions on the back of stronger global energy growth this year will keep energy markets focused on expanding ESG risks in the buildout of renewable generation via metals mining (Chart of the Week). …