The rapid reopening of China's economy from COVID lockdowns is brightening the outlook for global investors keen to leave behind one of their worst years on record, but may also fuel the inflationary pressures policymakers hope are abating. The impact of the reopening of the world's second largest economy
The rapid reopening of China's economy from COVID lockdowns is brightening the outlook for global investors keen to leave behind one of their worst years on record, but may also fuel the inflationary pressures policymakers hope are abating.
No doubt, it will be a bumpy ride. COVID cases, deaths, and the economic hit to China from rampant infections are yet to play out and commodity prices are already rising, adding to inflation risks. Chinese demand"will offset that story in the West..." that consumer demand and business spending have been slowing down as interest rates have gone up, said Chris Iggo, chief investment officer for core investments at AXA Investment Managers.Emerging markets, seen benefiting from tourism and trade links to China, were at the top of the buy list.
Amundi, Europe's leading investor, said the reopening may herald a"turning point" for emerging market equities, a trade also favoured by the investment institute at BlackRock, the world's largest asset manager.Another investor favourite is leading copper producer Chile. Its peso is up 7 per cent since early December as copper prices have jumped to hit $9,000 this week for the first time since June.
Travel could also benefit European luxury stocks, where Chinese consumption has dwindled since the start of the pandemic, UBS noted, accounting for around 17 per cent of sector sales versus 33 per cent in 2019. That should boost valuations.The boost to world growth from China's reopening was expected to hurt the safe-haven dollar but benefit the euro. China is the European Union's leading trading partner at about 16 per cent of all goods trade.
"One thing that we need to be sensitive to is whether the recovery in China adds to global inflationary pressures," AXA's Iggo said. He added that the reopening could prompt the European Central Bank to raise rates for longer since euro area inflation is largely energy driven.
日本 最新ニュース, 日本 見出し
Similar News:他のニュース ソースから収集した、これに似たニュース記事を読むこともできます。
Analysis:Foreigners' dry powder is fuel for a long stock market rally in ChinaHONG KONG/SINGAPORE : Foreign investors have barely begun buying back beaten-down stocks in China, but there are growing signs that the end of the country's tough COVID-zero policy marks the beginning of a long global march back into Chinese equities.December's sudden shift from tight health restrictions
続きを読む »
Analysis:Why the US needs Japan's help on China chips restrictionsWASHINGTON : When the Biden administration unveiled aggressive export controls in October aimed at blocking China from becoming a global leader in advanced semiconductors it was missing a key ingredient: agreement from U.S. allies to impose their own matching restrictions.Persuading Japan to join the U.S.
続きを読む »
Businesses prepare to invest in China again following relaxation of strict COVID-19 curbsChina’s abrupt relaxation of restrictions has led to the coronavirus sweeping across the country, with some estimates suggesting millions being infected daily.
続きを読む »
In rural eastern China, not testing for Covid-19 becomes the normDINGYUAN, China — Weng Shuiye laid back in her chair, sighing with relief as oxygen flowed from a tank into her nostrils. Breathing problems, body aches and lethargy had prompted her to visit a hospital in her home village in Tonglu county in eastern China's Zhejiang province' for treatment. Such symptoms are common for Covid-19, which is fast spreading across...
続きを読む »
Singapore clinics prepare for potential surge in COVID-19 cases, as more travellers from China arriveDoctors are however not too concerned about the imported cases they have seen so far, and believe their clinics are well-equipped to handle any possible surge.
続きを読む »
China defends its retaliation against South Korea, Japan Covid-19 curbsBEIJING – Chinese state media defended on Wednesday (Jan 11) the retaliatory measures against South Korea and Japan over their Covid-19 travel curbs as 'reasonable', while Chinese tourists decried Seoul's 'insulting' treatment on social media. China re-opened its borders on Sunday after three years of isolation under the world's strictest regime of Covid restrictions, which Beijing abruptly began dismantling in...
続きを読む »