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Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via Email'Substantial' potential in Chinese equities over the next 6 to 12 months: UBS WMSuresh Tantia of UBS Global Wealth Management is positive on China's economic recovery trajectory, but says there is still a tail risk associated with the possibility of a second Trump presidency.
Persons: Suresh Tantia Organizations: UBS, UBS Global Wealth Management, Trump
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailCredit Suisse expects Yen to strength later in the year as Bank of Japan lifts yield curve controlSuresh Tantia of Credit Suisse explains why tweaks to the Bank of Japan's Yield Curve Control policy would be negative for Japanese equities. He offers alternative areas of opportunities that investors should be looking into.
The Bank of Japan (BOJ) widened the allowable band for long-term yields to 50 basis points either side of its 0% target, from 25 basis points previously. European stock markets hit six-week lows, with the German (.GDAXI) and French benchmark indices (.FCHI) falling by as much as 1%, while London's FTSE 100 (.FTSE) lost as much as 0.8%. Japanese 10-year government bond yields surged to their highest since 2014, with euro zone yields following suit. The policy decision caused an immediate spike in the yen with the dollar index dropping 0.80% to 103.95, a six-month low. Credit Suisse on Monday upgraded its outlook from neutral to outperform for China's stock markets in the year ahead.
MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) was up 0.3%, after U.S. stocks ended the previous session with gains. Australian shares (.AXJO) were up 0.7%, with most gains coming from mining and resources giants as a result of higher oil prices. Case numbers in Beijing and Shanghai are steadily rising, prompting authorities to close some facilities. "The biggest story for investors in Asia is still the China reopening," said Suresh Tantia, Credit Suisse's senior investment strategist in Singapore. While the FTX exchange collapse continues to roil cryptocurrency markets, Bitcoin was 0.33% higher in Asian trading hours to $16,184.
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailFor China, economic recovery remains 'elusive,' says Credit SuisseSuresh Tantia of the investment bank says it has "turned neutral" on China stocks as it expects economic recovery to be delayed in light of the country's zero-Covid policy and weak real estate market.
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