Market

Morgan Stanley and Goldman Sachs reduce China’s prospects for economic development.
19Nov By TheGreenZoneNo Comments
Asia, China, Market

Morgan Stanley and Goldman Sachs reduce China’s prospects for economic development.

Hong Kong stocks are cheap but may miss out on the benefits of China's economic support, analysts at Goldman Sachs said, while Morgan Stanley warned tensions and tariffs could hurt, as both brokerages downgraded market forecasts.  Goldman Sachs trimmed its recommendation on Hong Kong shares to "underweight" from "market weight".  Morgan Stanley downgraded China to slight "underweight" from "equal weight" in emerging markets, with analysts noting that efforts to revive the economy and a Republican sweep of Congress and the White House could significantly impact markets. "We expect even stronger headwinds on corporate earnings and market valuation in the coming months," Morgan Stanley analysts said in a note dated Nov. 17.  Morgan Stanley's base-case target for Ch...
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Ahead of more US technology and trade restrictions, China targets vital metal exports.
18Nov By TheGreenZoneNo Comments
Asia, China, Market, USA, World

Ahead of more US technology and trade restrictions, China targets vital metal exports.

Beijing will expand export controls on critical minerals like tungsten, graphite, and magnesium needed to make electronics, a move analysts say is in anticipation of expected sweeping US tariffs on Chinese goods and increased curbs on advanced semiconductor chips and AI technology to China following the re-election of US President Donald Trump. The restrictions also apply to specific technologies that can be used for both civilian and military purposes. China controls more than 80% of the world’s supply of tungsten and about 90% of global magnesium production, according to one official estimate; the minerals are indispensable in building defense technology, weapons, aviation equipment, and spacecraft. Washington has pushed to delink the supply chain from China ...
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Why is COP29 all about money, and what is it?
12Nov By TheGreenZoneNo Comments
Asia, China, Market, World

Why is COP29 all about money, and what is it?

Each year, world leaders and negotiators gather at the United Nation’s climate summits to address the escalating climate crisis. But this year's COP29 in Baku feels different.  Dubbed the "Finance COP", its focus is on funding initiatives to curb the flailing increase in global warming temperatures. This COP also marks the last major talks before countries submit updated emission reduction targets in 2025. With the world far off track to limit warming to 1.5 degrees Celsius, the pressure is on. This year's discussions centre on a new financial target to be set before early 2025. For developing countries, especially in the Asia-Pacific region, this isn't just about numbers — it's about survival. What is COP29 and why is it ...
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Malaysia and other Asian economies prepare for the effects of the Trump trade war as tariffs present both opportunities and risks.
11Nov By TheGreenZoneNo Comments
Asia, China, Market, Singapore, USA, World

Malaysia and other Asian economies prepare for the effects of the Trump trade war as tariffs present both opportunities and risks.

Some Asian countries stand to gain if US president-elect Donald Trump pushes ahead with his promised massive tariffs on China and triggers a new wave of factory relocations to the rest of the region. But a trade war between the world’s biggest economies would also destabilise markets everywhere, with Asia — which contributes the largest share of global growth — the most affected. Trump, who won a crushing presidential victory this week, vowed during his campaign to slap 60 per cent tariffs on all Chinese goods entering the United States in an attempt to balance trade between the two nations. Analysts however question whether the new president will stick to such a high figure, and dispute the blow such tariffs could inflect on the Chinese economy, estimating GDP could be lowered b...
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Asian Financial Institutions Are at Risk Due to AI Adoption Lag in the Face of Increasing Financial Crime
11Nov By TheGreenZoneNo Comments
Asia, China, Market, Singapore, USA, World

Asian Financial Institutions Are at Risk Due to AI Adoption Lag in the Face of Increasing Financial Crime

AI-based transaction monitoring, sanctions screening, and fraud prevention deliver proven benefits as adoption gains traction New research from SymphonyAI and Regulation Asia reveals legacy systems, data quality, model explainability, data privacy, and regulatory uncertainty hinder AI adoption in financial crime compliance. Only 15% of Asian FIs report "advanced" AI integration in their compliance functions, leaving significant untapped potential. Financial crime, particularly money laundering, represents an escalating threat, accounting for up to 6.7% of global GDP. Palo Alto, Calif., (ANTARA/PRNewswire)- SymphonyAI, a leader in predictive and generative artificial intelligence (GenAI) SaaS products for the enterprise, today launched a new report with Regulation Asia, revea...
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HKMA and Multilateral Organizations Strengthen Their Strategic Alliance for Asian Climate Investment
11Nov By TheGreenZoneNo Comments
Asia, Market, World

HKMA and Multilateral Organizations Strengthen Their Strategic Alliance for Asian Climate Investment

The Hong Kong Monetary Authority (HKMA), has joined hands with multilateral organisations, including the Asian Development Bank (ADB), Asian Infrastructure Investment Bank (AIIB), and International Finance Corporation (IFC), a member of the World Bank Group, to announce a strategic partnership at the Asia Climate Investment Seminar today (11 November). The partnership marks a significant step towards strengthening strategic cooperation in sustainable finance in Asia. The strategic partnership serves as a call to action for all stakeholders to unite against climate change, with Actis GP LLP (Actis) being one of the General Partners supporting the initiative, aiming to deploy at least US$500 million in Asia. The partners emphasise the importance of a collaborative approach involving mult...
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The whole economy is anticipating the outcome of the US election, along with other economic news this week.
5Nov By TheGreenZoneNo Comments
Asia, Market, USA, World

The whole economy is anticipating the outcome of the US election, along with other economic news this week.

1. US election: Global economic impact in focus One story dominates the financial pages: the United States will choose its next president in a closely watched election on Tuesday, 4 November, featuring a tight race between Republican Donald Trump and Democrat Kamala Harris. The election outcome will have far-reaching consequences for global markets, economic policy and central bank strategies, with investors hoping for a decisive result to mitigate prolonged uncertainty. Reuters highlights the key events that underscore the stakes next week, including Federal Reserve interest rate decisions and China’s trade data release. Election impact: Markets seek clarity as traders brace for volatility. A Trump win could support recent Treasury yield and dollar gains; a Harris ...
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31Oct By TheGreenZoneNo Comments
Asia, Market, World

According to the Finance Ministry, headline inflation in Pakistan is expected to reach 6-7% in October 2024.

Pakistan’s headline inflation is expected to stay within the range of 6-7% in October and decelerate further to 5.5-6.5% by November, the Finance Division projected on Wednesday. In its ‘Monthly Economic Update and Outlook’, the ministry said economic recovery is expected to take advantage of declining inflation and continuation of fiscal consolidation in the coming months. “It is expected that inflation will remain within range of 6-7% in October and further down to 5.5 – 6.5% by November 2024,” read the report. In September, CPI Inflation 2024 was recorded at 6.9% – lowest level in 44 months – compared to 9.6% in the previous month and 31.4% in September 2023, as per the outlook report. Large-scale manufacturing According to the report, large-scale manufact...
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31Oct By TheGreenZoneNo Comments
Asia, Market, World

It is anticipated that global growth would continue to be modest but steady.

Global growth is expected to remain stable yet underwhelming. However, notable revisions have taken place beneath the surface since April 2024, with upgrades to the forecast for the United States offsetting downgrades to those for other advanced economies, in particular, the largest European countries. Likewise, in emerging market and developing economies, disruptions to production and shipping of commodities—especially oil—conflicts, civil unrest, and extreme weather events have led to downward revisions to the outlook for the Middle East and Central Asia and that for sub-Saharan Africa. These have been compensated for by upgrades to the forecast for emerging Asia, where surging demand for semiconductors and electronics, driven by significant investments in artificial intelligence, has b...
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31Oct By TheGreenZoneNo Comments
Asia, China, Market

Asia Economic Monthly: Exposure to China in Asia

Australia and Singapore are the most exposed to China growth due to strong economic linkages via the commodity and trade channels, respectively. The Philippines and India are the least exposed due to weak trade and investment linkages with China. The spillover from China to the rest of Asia has weakened over the last decade due to the fall in Asia’s export share to China. China’s policy blitz China’s recent stimulus blitz is the latest addition to the various uncertainties weighing on Asia’s economic outlook. Since September 24, the nation has announced monetary policy easing, liquidity support for equity markets, government pledges to arrest the property market decline, and reports of fiscal support in the pipeline. Nomura’s China economics team has lifted its Q4 2024 GDP fo...
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