When consumers and investors think of Asia, they think of populous economies that are both sophisticated and well-established. But what about the surrounding boom of lesser-known economies? Asia isn’t just China and India: the rest of the continent is coming up in the world too, seeking to overtake other economies in a matter of years.
This report provides Aberdeen's insight on why we believe investors should look beyond the short-term distractions and judge Asian fixed income markets on their strong medium-to-long-term prospects.
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China (Aberdeen Greater China Fund, Inc.)*****: The MSCI Zhong Hua Index1 rose largely in line with the rest of Asia in October. Towards the end of the period, higher interbank rates prompted the central bank to intervene for the second time in four months to inject cash in the financial systemDownload full commentary
Indonesia (Aberdeen Indonesia Fund, Inc.): In October, local equities outperformed the broader region. The temporary resolution to the U.S. debt ceiling impasse, and anticipation by investors of further postponements of the Federal Reserve’s (Fed) tapering of asset purchases, lifted risk sentiment and emerging market stocks.Download full commentary
Asian Equities (The Asia Tigers Fund, Inc.): Asian equities rose in October as sentiment was lifted by signs of resilience in some regional economies. Markets also benefited from improving global risk appetite following the last-minute deal in the U.S. to reopen the government and suspend the debt ceiling until February. This was despite early anxieties over the impasse in fiscal talks that had caused the 16-day federal shutdown. India led gains as investors were further encouraged by policymakers’ efforts to tame inflation. Japan trailed the region, given disappointment over the slow progress in structural reforms.Download full commentary
Global Income (Aberdeen Global Income Fund, Inc.): U.S. government bonds sold-off a little during the first half of October as fears of a U.S. default were fairly muted during the debt ceiling fiasco. Once a resolution was reached, bonds rallied as markets began to focus on the longer-term impact of government shutdown on growth, as well as the likelihood of a further delay to U.S. Federal Reserve (Fed) tapering consequent of a lack of clean economic data and the appointment of Janet Yellen as the new Fed Chairman. The result of the shifting sentiment was that U.S. Treasury yields fell in October with the 10 year yield closing 10 basis points lower at 2.55%.Download full commentary
India (The India Fund, Inc.): Indian equities rose to new highs in October as the temporarily fading threat of U.S. Federal Reserve (Fed) tapering and resilient corporate earnings buoyed sentiment.Download full commentary
Singapore (Aberdeen Singapore Fund, Inc.)****: Singapore equities rose in October, as a temporary resolution to the U.S. debt ceiling impasse was reached, and investors anticipated further postponements of the Federal Reserve’s (Fed) tapering of asset purchases. In addition, manufacturing data from China indicated a continued expansion, buoying sentiment.Download full commentary
Asia-Pacific Fixed Income (Aberdeen Asia-Pacific Income Fund, Inc.): Asian fixed income markets posted modest gains in October, as risk appetite recovered after the U.S. reached a deal to resolve the fiscal impasse and end a government shutdown. Weaker U.S. data also stoked expectations that the Federal Reserve (Fed) would delay a withdrawal of stimulus for longer.Download full commentary
**** As of 11/01/2013, Fund name changed from The Singapore Fund, Inc.
***** As of 12/02/2013, Fund name changed from The Greater China Fund, Inc.