Dollar weakness boosts Asian market share

Angus Tulloch, First State Investments

Starting off with currency themes in the Asian market, the first is obviously US dollar weakness, as...

Starting off with currency themes in the Asian market, the first is obviously US dollar weakness, as most currencies in the region are tied to the dollar formally or informally. This does improve competitiveness and has actually helped Asian economies to grow market share, particularly against companies in Europe. Perhaps more importantly from the stock market point of view, it also encourages low interest rates and easy credit. But it is very important to remember that real collapse in the US dollar is not in anyone's interest. In Asia it would lead to protectionism, and everywhere e...