May 2012
Developed Asia’s equity indices ended April slightly higher. The MSCI Asia Pacific (ex-Japan) index added 0.8% in local currency terms. Shares have risen on hopes that central bankers in the US and China would act to stimulate their respective economies. Although Europe’s ongoing debt drama – a main export market – hit wider sentiment.
Australian markets have provided much of the recent talking points. The country’s central bank surprised analysts when it cut interest rates by 50 basis points to 3.75% on 1 May. The cut was larger than many had expected, and was made in an attempt to kick-start Australia’s slowing economy. Tourism and manufacturing numbers have been disappointing, weighed down by the strength of the Australian dollar. House prices have also fallen, with many fearing a slump in the real estate market could damage the wider economy.
The South Korean economy, meanwhile, was able to shrug off worries about a slowdown in China to deliver its best quarterly performance in a year. Government outlay and increased investment from the semiconductor sector meant GDP was 0.9% for the first three months of 2012, up from 0.3% in the previous quarter.
The information contained in this document has been derived from sources which we consider to be reasonable and appropriate. It may also include our views and expectations, which cannot be taken as fact. Investment markets can change rapidly and the views expressed should not be taken as statements of fact, nor relied upon when making investment decisions.
