Japan's Markets Today
Equity price gains in Japan may be driven by innovation over the long term. Portfolio manager Shuntaro Takeuchi discusses the opportunity set.
Across emerging markets, growth in e-commerce accelerates as the pandemic reshapes consumers' shopping patterns.
Q&A with Teresa Kong
In this short Q&A, Teresa Kong, Portfolio Manager, provides her insights on the economic impact of the coronavirus and where she sees risks and opportunities, and why the current prices could represent a once in a decade opportunity to buy Asia high yield.
China After COVID
With the coronavirus largely under control in China, we have an opportunity to consider what the post-COVID investment environment there might look like.
Matthews Pacific Tiger Strategy Fall Outlook: Entrepreneurial Companies Capture Growth in Asia
Amid a global pandemic and continued U.S.-China trade tensions, quality-growth companies remain strong performers. Portfolio managers Sharat Shroff, CFA, and Inbok Song discuss the opportunity set for growth investors.
The Resilience of Cities
Across emerging markets, urban consumption provides ballast and stability to a number of sectors and industries.
China’s Investment in Developing Economies
Emerging markets are developing richer, more consumer-led economies as China expands its infrastructure investments and trade relationships.
Innovation in Action
Innovative companies are reshaping Asia's investment landscape, as older industries recede and newer business models take their place.
Lessons From China
What are the lessons that can be learned from observing the Chinese economy and U.S.–China relations? Sinology explores the takeaways from five topics including China’s approach to controlling COVID-19, its economic recovery and Washington’s misguided approach towards China.
Measuring Intangibles for Asia's Growth Companies
Portfolio managers Taizo Ishida and Michael Oh, CFA, explore the growth drivers for Asia's new economy sectors, including how to measure and assign potential future value of intangible assets.
Japan Election and Macro Update
As Japan considers Prime Minister Abe's successor, fiscal and monetary policy appears to be remaining stable and Japanese corporate profits are climbing back from COVID-19 impact, at least for now.
Four China Trends
Four important trends are continuing in China: COVD-19 remains largely under control; the economy is in a V-shaped, post-COVID recovery, led by strong domestic demand; U.S.-China relations are tense and likely to worsen; but the political problems between Washington and Beijing should continue to have little impact on China's economy or its investment environment.
China's Economic Resilience
China's V-shaped economic recovery continued for a fourth consecutive month in June, led by strong domestic demand. If COVID-19 remains under control, China can remain the world's best consumer story.
Asia's Information Technology Leap
Software and hardware companies are supporting new forms of consumption in Asia, such as the growing popularity of online games. Portfolio managers Sharat Shroff and Inbok Song discuss the opportunity set for long-term investors.
A Closer Look at China's Economic Resilience
As the global economy slows, we remain optimistic about the long-term growth potential of Chinese equities. From a public health perspective, China has flattened its curve of new cases COVID-19. Fiscal and monetary stimulus, while incremental, remains supportive. Interest rates remain positive, giving China's central bank room to maneuver.
India Update: COVID-19 Response and Economic Outlook
India's government is taking incremental steps toward re-opening its economy, starting by bringing production and manufacturing facilities back online.
U.S. and China: A World of Two Asset Classes?
As we look at emerging from the coronavirus pandemic, it is now becoming clear that there may be some long-lasting impacts to the world that will affect politics, economics and investments. Are we heading towards a world of two asset classes: the U.S. and China?
China Is Bouncing Back, but Can We Trust Its Numbers?
China's economy looks to be well on its way to recovering from the coronavirus-imposed lockdown with consumer spending, manufacturing and investment bouncing back. But can we trust China's macro numbers?
China on the Road to Recovery
China's economy was the first to suffer the consequences of fighting the novel coronavirus and is the first on the road to recovery. After an initial cover-up and more than 3,000 deaths, China appears to have brought COVID-19 under control and laid the foundation for a gradual economic recovery, although normal activity levels may not be reached until 2021.
Demographics Drive Japan's Innovation and Growth
Japanese growth stocks, along with global equities, experienced considerable volatility in the first quarter. Uncertainty around the coronavirus, slowdowns in global manufacturing activity and worries about dampened consumer activity related to Japan's consumption tax each impacted Japan's markets.
Is China a Safe Haven?
After an initial cover-up and more than 3,000 deaths, China appears to have brought COVID-19 under control, just as the spread of the coronavirus is accelerating across the U.S. and Europe. With China's domestic-demand driven economy set to rebound and mainland investors avoiding the panic that has smacked western markets, its economy could put a floor under global growth and offer a safe haven to investors.
Coronavirus and Falling Oil Prices Roil Markets; Long-Term Perspective Is Key
Long-term perspective is key as coronavirus and falling oil prices roil markets. Members of the Matthews Asia investment team share their insights and outlook amid volatile markets.
I've been fielding many questions from investors about the new coronavirus, COVID-19, and would like to share my answers with you in this issue of Sinology.
Matthews Asia CIO Robert Horrocks, PhD, and Investment Strategist Andy Rothman offer their perspectives on the Coronavirus and its possible impact on China's governance and economy.
A Year of Living Less Dangerously
The publication this week of the U.S. — China trade deal and the final macro numbers for 2019 should set the stage for healthy economic performance and stronger market sentiment in China in 2020, but the risk of a return to tense relations between Washington and Beijing looms over 2021 and beyond.
The 2020 Outlook for Southeast Asia
The best environment would be moderate U.S. growth, a sideways U.S. market and a weaker U.S. dollar.
A Disappointing Deal, and a Healthy Economy
President Trump called it “amazing,” and U.S. Trade Representative Lighthizer said the China deal is “remarkable.” In my view, however, it is merely the best trade deal in the last 36 months of Chinese history, and it falls well short of two key objectives. Because the deal sets highly unrealistic goals for U.S. exports to China...
Troubled Times Can Give Birth to Opportunity
Asia goes into the global deceleration with already-lean companies and a valuation advantage.
What's Next for China A-Shares Inclusion in MSCI Indices
Improvements in accessibility are expected to accelerate further inclusion in the near term.
The Case for Greater China Exposure in Global Equity Portfolios
China has come to the forefront of investors’ minds, and has become a larger portion of global indices over the past years while dominating global headlines. We believe investors’ slow reaction to the rise of China as a global economic power creates an opportunity for investors who are willing to lead the pack.
Completing Your China Exposure: Small Companies Help Capture China's New Growth Drivers
As China's economy continues its shift toward services and consumption, small and medium-sized businesses are accelerating this transformation.
Stepping Back From the Brink?
A trade deal is expected when Presidents Trump and Xi meet in November, but even if the talks fail, Sinology explains why China can mitigate the impact and maintain the world’s best consumer story.
Country Updates for the month ending September 2019
Chinese equities were flat in September. A-shares posted slight gains while small caps posted slight losses.
Asia's Productivity Boom
As Asia’s private sector uses capital and labor more efficiently, economic growth rises.
The Case for Greater China Exposure in Your Portfolio
While global investors continue to feel the repercussions of U.S–China trade tensions, China boasts a vibrant, entrepreneurial economy, creating opportunities for investors with a long-term view. Despite market volatility, China remains the world’s best consumer story, represents the world’s second largest economy and has been the key driver of global economic growth for a decade.
Please join Matthews Asia Portfolio Strategist Jeremy Murden along with Portfolio Managers Winnie Chwang and S. Joyce Li, CFA, for an interactive discussion on:
- Why China remains a global growth engine
- Investment opportunities in China to keep an eye on
- Opportunities and risks in China’s A-share market
- Reasons to increase your allocation to China
- The economic outlook for China in the months ahead
Evaluating Portfolios in Unsettling Times
Investment opportunities arise amid trade-related market disruption.
The Promise of 'Belt and Road'
China's ambitious infrastructure initiative points to the potential of global cooperation.
E-Commerce Surges in Southeast Asia
In Southeast Asia, a collective market of over 650 million urbanizing and upwardly mobile people have seen many companies poised to prosper in the burgeoning e-commerce sector and many have set their sights to scale in Indonesia.
Decoding Hong Kong's Protests
Protests in Hong Kong create a political balancing act for China. With the world watching, a patient approach may be in China's best interest.
Management, Not Manipulation
We believe China is managing, not manipulating, its currency. The country's central bank aims to maintain a stable exchange rate amid trade-related volatility.
Trade War Won't Stop Asia's Growth
Factors other than U.S.-China friction drive the region's progress.
China's "Currency Manipulation"—A Sign of Panic or a Cunning Plan?
Over the past several months, there has been hype about the prospect of the Chinese renminbi (RMB) weakening past 7 per U.S. dollar, despite no evidence that 7 is a magical number. China's central bank, People's Bank of China (PBOC), had denied that it was focused on defending 7, and the IMF said it wasn't significant.
Chinese government economists in Beijing have indicated that, while they are prepared to intervene with stimulus if current conditions deteriorate, investors should not anticipate material changes to monetary and fiscal policy. Sinology takes a look at the latest China economic data.
Has Trump Re-set U.S.-China Relations?
Following U.S. President Donald Trump's recent Asia trip, Sinology explains why prospects seem brighter for an improved broader U.S.–China relationship.
For the Month Ending May 2019
Market updates from across the region.
Our Latest Views on the U.S. - China Trade Dispute
U.S. - China trade concerns continue to weigh on global markets. Matthews Asia offers its perspective on how the dispute affects the long-term investment landscape.
Health Care's Rich, Diverse Landscape
Primed for growth, Asia’s health care sector helps capture consumer spending in the region.
Market Reaction to Tariffs Misses Larger Opportunity in Asia
Structural advantages that point to fast long-term growth in Asia are getting short shrift.
For the Month Ending April 2019
Market updates from across the region.
Indonesia's Election Outcome Removes Overhang for Equities
With Jokowi appearing set to retain power, equity flows should improve and indications are positive for economic reforms as political uncertainty is dispelled.
Asia Credit Spreads Look Rewarding
We recently sat down with Matthews Asia Portfolio Managers Teresa Kong and Satya Patel to discuss the appeal of Asia corporate bonds for bond investors seeking global diversification.
Quarterly Review of Asia's Markets
China and Asia are once again at the forefront of many investors' minds. Investors have taken notice of a potential resolution to the trade dispute with the U.S., the pause in Federal Reserve tightening and the curtailing of the U.S. dollar's rally, along with headlines suggesting China is looking to stimulate growth.
What Investors Should Know About MSCI's Rising China A-Shares Inclusion
China's A-shares are gaining a larger role in MSCI indices. Matthews Asia's portfolio strategy team offers its views.
China's Debt Problem
Sinology explains that the key to understanding China’s debt problem is that it is the result of state banks lending to state firms at the direction of the state, so there is no mark-to-market pressure.
Four Key Elections in Asia to Watch
What investors should expect from upcoming elections in Thailand, Indonesia, India and the Philippines.
Asia's Markets Can Do Without the Drama
Focusing on the long term and on better-managed companies has been a tailwind for returns in Asia.
Assessing Valuations in India's Stock Market
When considering the prospects for India's stock market, key factors of performance are the growth outlook and underlying valuations.
Six Sources of Alpha in Emerging Markets
Matthews Asia Portfolio Strategist David Dali discusses the new drivers of growth in emerging markets.
Will Vietnam and Thailand Benefit From U.S.-China Trade War?
In Southeast Asia, which countries have been the fastest to benefit from a shift in supply change and manufacturing, as costs in China have risen? Our regional expert takes a look.
Clouds Starting to Disperse for Asia Fixed Income
In our 2019 Fixed Income Outlook, Matthews Asia's fixed income team discusses possible tailwinds for Asia bonds ahead.
Sometimes It's Wiser Not to Follow the Herd
Conventional wisdom is always right—until it isn't. The question is: When is it right to disagree? The investment herd is thinking: Trade wars, tight money, fractious politics and a falling stock market in the U.S. Banking systems in distress in Europe and the splitting of the EU.
China Equities 2019: Fundamentals Sound, Sentiment Is Wild Card
Amid macro concerns including trade conflicts and fears of slowing growth, Chinese equities were highly volatile in 2018. The declines in equity prices seem to have been driven largely by sentiment. Two decades of investing in China has taught me to look past sentiment and take a closer look at what's happening on the ground.
County Updates: For the month ending October 2018
Market Updates from across the region.
Value Emerges in Asia's Markets as Panic Sets In
I have been waiting for the first signs of real panic in Asia's bear market. First, there was the question of why India had been so defensive, with its current account deficit, high structural inflation, strained banking system, difficult government finances and high valuations.
GICS Sector Changes and Implications for Investors
Changes result in a major shift in sector weights across indices globally.
The Great China Disconnect
Our October Sinology explores the disconnect between weak market performance in China, and strong macro conditions and corporate earnings. How likely is this to narrow?
For the Month Ending September 2018
Market updates from across the region.
India and Southeast Asia: Country by Country Outlook
India's growth rate accelerated to 8.2% in the second quarter of 2018 as the shocks from demonetization and the imposition of the Goods and Services Tax (GST) wore off, supported by inventory restocking and a low base of comparison. The principal drivers of growth were government and private spending.
China Equity Markets: Pockets of Opportunities, Fundamental Research Is Key
Following a substantial run-up in 2017, China's stock markets experienced notable volatility in recent quarters. The MSCI China Index was down roughly -9% year to date measured in U.S. dollars as of September 30, 2018, while China's mainland, domestic A-shares were down nearly -20% measured in U.S. dollars for the same period.
China Takes Leading Role on Global Trade
Matthews Asia CIO Robert Horrocks says China's leadership on free trade is an important reason to invest in the growth of Asia.
5 Trends Helping Asia’s Entrepreneurs Thrive
Asia’s entrepreneurs have capital, customers and conviction. Learn about the opportunity for global investors.
Asia’s Small Companies Go Big
Capturing a diverse range of business opportunities and return drivers, Asia’s small companies offer attractive opportunities for long-term growth.
Are Turkey's Troubles Contagious?
Turkey's crisis may offer investors the opportunity to build positions in ASEAN countries and India.
The Likely Trade War Fallout in Asia
Dispute could be a setback for productivity, affecting consumers globally.
What's Driving the Downturn in Asia's Markets?
Matthews Asia CIO Robert Horrocks says markets may have overreacted in Asia to news of a trade war and tighter money.
Asia's Stock Valuations Open Opportunities
Matthews Asia CIO Robert Horrocks says valuations are nowhere near as stretched in Asia as they are in the U.S.
Is China Tanking?
Chinese equities have been soft and President Trump is threatening a trade war, but earnings and margins remain firm and China is still the world’s best consumer story.
With trade war rhetoric growing hotter, Presidents Trump and Xi still have time to head to the negotiating table.
Our Views on the U.S.-China Trade Dispute
U.S.-China trade concerns have been weighing on investors. Matthews Asia examines the strength of China's underlying fundamentals, the rate of its middle class expansion and domestic consumption.
Global Markets Fret Over What the Fed Will Do Next
Matthews Asia CIO Robert Horrocks says worries about U.S. monetary policy are not without cause.
New Chapter for Korea Peninsula After U.S.-North Korea Summit
Matthews Asia Portfolio Manager Michael Oh says South Korea’s economy may benefit from closer ties to North Korea, but costs and risks remain.
Matthews Asia Country Updates
Market updates from across the region.
Asia's Stability Makes It Poised for Growth
Matthews Asia CIO Robert Horrocks says Asia’s political and economic environment looks strong for the region’s long-term growth prospects.
What a Trade War Means for Asian Bonds
Media reports have been focusing on a “trade war” following President Donald Trump’s decision to impose tariffs on up to US$60 billion in Chinese imports, targeting technology products.
Investing During a Different Rate Cycle
Amid a rise in market volatility around the world, the fundamentals for Asia equities look fairly healthy. Investors should not ignore, however, the interconnectedness of today’s global markets.
Uncovering Opportunities in Asia's Tech Sector
Shares of some large-capitalization tech companies in Asia have delivered strong performance so far this year, driving up the tech sector weighting relative to the broader market. Do these types of stocks represent the best opportunities in Asia’s tech sector right now?
2017 Third Quarter Review
Matthews Asia ended 3Q 2017 with US$31.4 billion in assets across Asia investment strategies. The investment team includes 45 members, with portfolio managers and analysts aligned by strategy.
China's A-Share Market: More Investable than Skeptics Think
We explore the reasons we believe the A-share market has become more investable, including improved corporate governance and better disclosures, the ability of companies to create value for investors, company discipline around capital allocation and the fading role of state ownership in certain sectors.
The Chinese economy delivered many surprises in the first half of the year, disappointing (yet again) the pundits who predicted a hard landing. Macroeconomic data published over the weekend is consistent with a healthy economy, driven by impressive wage growth and consumer spending, and supported by strong earnings growth.
Focus on Korea
South Korea’s young democracy has successfully withstood months of political turmoil, which concluded recently with the election of President Moon Jae-in as its new leader. What can investors expect next?
A Look at Liquidity
What are the key factors behind changes in liquidity in Asia, and what does this mean for long-term investors in the region? In this issue, we offer a guide to considering such related issues with less trepidation. Asia Insight explores.
CIO Annual Letter
The last few days of 2016 have receded amidst continued pain for Asia's markets. Matthews Asia CIO Robert Horrocks, PhD, reflects on the year that began with a rally in Asia's equity and fixed income markets, but it ended in a slump.
Strong future growth is rooted in some basic dynamics in which Asia Pacific excels.
Brexit and Trump, a Global Trend?
Is the election of Donald Trump the latest example, following on from the Brexit vote and the success of Bernie Sanders and non-mainstream candidates in Europe, of a global trend in demagoguery and isolationism that will sweep all in its path, including the economies of Asia?