Asian markets a mixed bag in response to inflationary and geopolitical pressures

Region more insulated than most

James Baxter-Derrington
clock • 4 min read
The Russia-Ukraine war has caused stagflation to become a more important risk factor for investors
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The Russia-Ukraine war has caused stagflation to become a more important risk factor for investors

Asian debt markets are responding in a variety of ways to the inflationary pressures that began last year and the geopolitical ones caused by Russia’s ongoing invasion of Ukraine.

However, while growing consumer prices and slowing growth are pushing stagflation to the front of emerging market investors' minds, Asian debt markets are more insulated from these threats than most. Asia's "idiosyncratic story" remains focused on China, according to Amundi co-head of emerging markets fixed income Sergei Strigo, who said investors had been keeping an eye on developments in the real estate sector over recent months but added that China is "really the only economy which has started counter-cyclical adjustments". Fund selectors urge for more EM ex China funds He added...

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