- China’s monetary policy option appears to be limited as a stable CNY would be crucial to keep property developers solvent amidst the increase in maturing FX bonds in the upcoming months.
- The prospect for sizable fiscal interventions also appears to be limited, as the Chinese government may favour more productive fiscal programmes rather than handouts for customers.
- The “strong Dollar – weak Yuan” narrative that hitherto hamstrung Asian markets may persist for some time given the US economy’s limited exposure to China’s economic slowdown.
- Despite the unfavourable global condition, the Indonesian market remains relatively dynamic thanks to strong macroeconomic fundamentals and improved risk perceptions on Indonesia’s IOUs.
