Bloomberg
Published Dec 11, 2018 21:00
Updated Dec 11, 2018 22:10
A Guide to Emerging Asia in 2019: Buyers Beware
(Bloomberg) -- As emerging-market bulls start to signal the worst may be over, domestic risks across Asia are worth keeping in mind for 2019: from central-bank autonomy in India to the price of rice in the Philippines.
On track for their worst year since 2015, developing markets are getting a tailwind from the U.S.-China trade truce, a weakening dollar and a more cautious tone from the Federal Reserve. Morgan Stanley (NYSE:MS) forecast next year will feature a comeback for emerging markets as external headwinds ease. John Woods, chief investment officer for Asia Pacific at Credit Suisse (SIX:CSGN) Group AG, reckons “EM is looking pretty cheap” after a turbulent year.
But not all are forecasting a rebound. The Bank of America (NYSE:BAC) strategist David Woo says he wouldn’t touch emerging markets “with a 10-foot pole” citing concerns about market volatility. And even some clients of Morgan Stanley are less bullish, according to the U.S. bank, citing China as “a significant risk” amid trade negotiations, on top of the growth slowdown there.
Below are a list of risks in other emerging Asian countries that investors could be missing by focusing too much on global pressures:
India
Indonesia
Philippines
Thailand
Written By: Bloomberg
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