Asia

CIO Shane Balkham buoyed by opportunities in Japan

Following a strong showing in 2019, we expect Asia's fixed income markets to benefit from supportive investor sentiment as underlying economic growth in the region stabilises in 2020.

Japanese stocks appear to be vulnerable to a multitude of risks.

What lies ahead in 2020? Will the US economy tip into recession or accelerate? Will Brexit make or break the UK and its erstwhile partners in Europe?

‘Change is the only constant’ has become increasingly evident for Asia as the impact of the coronavirus is felt across global financial markets. Despite these headwinds to near-term growth, Fidelity Asia Fund portfolio manager Teera Chanpongsang highlights the continued structural shifts in the region and how discipline around these fundamental drivers can reward investors at such times of volatility.

Many investors are worried about the potential impact of the coronavirus. Only one case has been reported in Japan so far, though the authorities have quarantined a cruise ship with affected passengers on board.

Asian equity markets have underperformed developed markets since around the taper tantrum in 2013, driven partly by monetary policy and tax cuts in the US and partly by investors’ caution on Asia.

Major indices rocked by growing threat of pandemic

Feasts from the East

Opportunities in EMs such as Indonesia and Myanmar