Golden Week/ US-China/ Global Views/ Solar

Deputy Chief Economist

Sharmila Whelan

Independent and original Asian investment research

Aletheia Capital

Aletheia Capital (HK) Ltd. (previously known as Asianomics) combines the extensive knowledge of its experienced team with technology and regulatory changes to disrupt Global Markets business in Asia. The firm is completely independent with no conflicts of interest either on Investment Banking advisory or Capital Markets execution.

Macroeconomics

<p><strong>Economic disruptions due to Covid-19 reduced global US dollar purchasing power by US$3.8trn in the first half of the year. Compared with advanced economies, developing Asia has fared better, relatively speaking. Asian exports have rebounded as the China’s economy  has normalised and as lockdown restrictions in the US and Europe eased over the summer. August regional trade data suggests that the best is behind for Asian exporters though. While one month’s worth of data does not constitute a trend,  there are good reasons to be cautious.  The post- Covid-19 recovery is petering out. The number of infection cases are once again rising in the US and Europe while US restrictions on Chinese technology companies are tightening Notwithstanding another round of government enforced national lockdowns in advanced countries, we expect Asian export growth to moderate from here. </strong></p>

Economic disruptions due to Covid-19 reduced global US dollar purchasing power by US$3.8trn in the first half of the year. Compared with advanced economies, developing Asia has fared better, relatively speaking. Asian exports have rebounded as the China’s economy  has normalised and as lockdown restrictions in the US and Europe eased over the summer. August regional trade data suggests that the best is behind for Asian exporters though. While one month’s worth of data does not constitute a trend,  there are good reasons to be cautious.  The post- Covid-19 recovery is petering out. The number of infection cases are once again rising in the US and Europe while US restrictions on Chinese technology companies are tightening Notwithstanding another round of government enforced national lockdowns in advanced countries, we expect Asian export growth to moderate from here. 

DSP BlackRock Liquidity Fund (DSLQYDG IN)

Asian Exports & Covid - Best Is Behind