Asia: Macro slowdown - OCBC
According to analysts at Oversea-Chinese Banking Corporation Limited, Asia has witnessed a macro slowdown throughout 2018 and they do not see any signs of a further headline negative shock for the Asian economies.
“RMB movement will be a by-product of policy action addressing larger domestic issues. Stabilization in the Chinese economy a pre-requisite for a sustained upswing in the RMB. EM Asian FX would require a confluence of a weaker USD and a stabilization in the Chinese economy (and therefore the RMB) for it to break out of its structural depreciation trend.”
“Pending a concrete bottoming out of the global economy, Asian long-end govie yields may continue to remain under wraps, with Asian central banks now no longer likely to feel pressured to keep pace with the Fed in 2019.”