Macro Research 2Q22 Market Report Card – Another win for Asia | FSMOne SG - Research Highlights

Macro Research

2Q22 Market Report Card – Another win for Asia?

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• Global equities had a rough 2nd quarter as we wrap up the first half of 2022, as seen by the -13.4% decline of the MSCI ACWI Index in 2Q22. On a country level, the top performing markets in 2Q22 (in SGD terms) were China (+6.2%), Hong Kong (+3.3%) and Indonesia (-2.4%).

• China: We continue to remain optimistic on China’s growth projections despite setbacks from Covid restrictions and pessimistic earnings outlook as the Chinese government has shown that they are ready to support the economy via policy measures and easing of Covid lockdowns.

• Hong Kong: Similar to China, Hong Kong has recently started to ease Covid restrictions by suspending Covid flight bans, signalling room for recovery and growth ahead.

• Indonesia: With the relaxation of domestic restrictions and recent travel restrictions, coupled with strong growth and consumption, we expect to see positive impacts for the economy looking ahead.

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