Asia Morning Bites
ASEAN Morning Bytes
General market tone: Risk-on.
Regional markets are likely to take their cue from Wall Street, while Brexit uncertainty continues to weigh on sentiment.
EM Space: Weak US price data supports a Fed-delay, seen to boost risk taking in Asia
- General Asia: Slow growth in producer prices in the US feeds into the Fed delay theme, boosting risk appetite in Asia on Thursday. Among other things, Brexit and US-China trade talk remain the key drivers for markets. President Trump has indicated that he wasn’t in any rush to get a deal with China in place.
- Malaysia: January industrial production data is due today. The surprisingly strong export growth subject consensus estimate of 2.3% IP growth to upside risk (ING forecast 3.0%, prior 3.4%). Data will provide a sense about GDP growth in the current quarter, which on our forecast bottoms at 4.2%. The return of deflation and high real interest rates make the case for the central bank (BNM) easing to support growth. We are reviewing our forecast of an on-hold BNM policy this year.
- Philippines: The government has scaled back its growth expectations to 6-7% in 2019 and 6.5-7.5% in 2020 from 7-8% target for both years. Meanwhile, it continues to target a budget deficit of 3.2% of GDP in 2019 (Php631.5 bn) and 3.0% of GDP in 2020 to 2022. Lowered growth targets coincide with forecasts for slower growth from 4.2-4.9% should the ongoing budget delay continues.
What to look out for: Chinese retail sales
- China industrial production and retail sales (14 March)
- Indonesia trade (15 March)
- Thailand GIR (15 March)
- India trade (15 March)
- Philippines remittances (15 March)
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This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more
This publication has been prepared by ING solely for information purposes irrespective of a particular user's means, financial situation or investment objectives. The information does not constitute investment recommendation, and nor is it investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Read more