ASEAN Morning Bytes
The global spread of Covid-19 remains the key driver for markets in an otherwise light data calendar today in Asia
EM Space: Covid-19 continues to rule markets
General Asia: The global spread of Covid-19 remains the key driver for markets in an otherwise light data calendar today in Asia. The highlight of the day is Malaysia’s stimulus package. Yesterday’s manufacturing releases were a mixed bag with Thailand posting a deeper than expected fall but Singapore's data bouncing back in January. We don’t pay much heed to this data as growth is poised for a bigger hit from the virus in February and the months to come.
Malaysia: Despite political upheaval earlier this week, the government is going ahead with a stimulus package to help the economy ride over the crisis brought on by the global Covid-19 outbreak. Interim Prime Minister Mahathir Mohamad met finance ministry officials yesterday in this regard and he will be making the announcement today around 4 pm local time. Already prepared before Mahathir’s shocking resignation on Monday, the package is expected to include support measures for travel and tourism and also to spur domestic demand in the face of persistent export weakness ahead.
Singapore: It was a surprisingly good start for the manufacturing sector in 2020 with a 3.4% YoY and an 18.2% MoM SA surge in January. We treat the bounce as a transitory blip, rather than ongoing strength as manufacturing activity remains at the mercy of the virus and the overall economy is at risk of a recession in the first half of 2020. We expect accelerated fiscal policy support, and possibly an easing by the Monetary Authority of Singapore in April to help the recovery in the second half.
What to look out for: Malaysia stimulus, Covid-19 developments
- Malaysia stimulus package
- Philippines budget balance (27 February)
- US GDP and durable goods orders (27 February)
- EU CPI (28 February)
- India GDP (28 February)
- Japan labor and manufacturing data (28 February)
- Korea manufacturing data (28 February)
- Thailand balance of payment (28 February)
Download
Download article
27 February 2020
Good MornING Asia - 27 February 2020 This bundle contains 3 articles"THINK Outside" is a collection of specially commissioned content from third-party sources, such as economic think-tanks and academic institutions, that ING deems reliable and from non-research departments within ING. ING Bank N.V. ("ING") uses these sources to expand the range of opinions you can find on the THINK website. Some of these sources are not the property of or managed by ING, and therefore ING cannot always guarantee the correctness, completeness, actuality and quality of such sources, nor the availability at any given time of the data and information provided, and ING cannot accept any liability in this respect, insofar as this is permissible pursuant to the applicable laws and regulations.
This publication does not necessarily reflect the ING house view. This publication has been prepared solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument. Reasonable care has been taken to ensure that this publication is not untrue or misleading when published, but ING does not represent that it is accurate or complete. ING does not accept any liability for any direct, indirect or consequential loss arising from any use of this publication. Unless otherwise stated, any views, forecasts, or estimates are solely those of the author(s), as of the date of the publication and are subject to change without notice.
The distribution of this publication may be restricted by law or regulation in different jurisdictions and persons into whose possession this publication comes should inform themselves about, and observe, such restrictions.
Copyright and database rights protection exists in this report and it may not be reproduced, distributed or published by any person for any purpose without the prior express consent of ING. All rights are reserved.
ING Bank N.V. is authorised by the Dutch Central Bank and supervised by the European Central Bank (ECB), the Dutch Central Bank (DNB) and the Dutch Authority for the Financial Markets (AFM). ING Bank N.V. is incorporated in the Netherlands (Trade Register no. 33031431 Amsterdam).