A full reopening of China and a slowdown in the Federal Reserve’s tightening cycle will be key drivers for the MSCI Asia Pacific Index to snap back from its worst year since 2008. Signs of relief have emerged as Beijing abandons its Zero-Covid policy and the dollar edges down from its peak, but bruised investors will need more catalysts.the US.
Covid spread “will weigh heavily on China’s consumption and economic growth, at least for the first half of 2023”, Amir Anvarzadeh, strategist at Asymmetric Advisors Pte wrote in a note. The pressure has started to ease as expectations grow for the Fed to turn less hawkish, allowing the Bloomberg dollar gauge to decline since September.
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