Dollar, China Imperil Asia Stocks’ Stellar Fourth-Quarter Record

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(Bloomberg) -- Seasonality shows that Asian equities perform best over the last three months of the year. History may not repeat itself this time around.Most Read from BloombergKey Taiwan Tech Firms Helping Huawei With China Chip PlantsWhy a US Recession Is Still Likely — and Coming SoonWall Street Fear Gauge Ratchets Up After Jobs Data: Markets WrapKevin McCarthy Ousted as US House Speaker by Republican DissidentsAirbnb Is Fundamentally Broken, Its CEO Says. He Plans to Fix It.As investors fret

-- Seasonality shows that Asian equities perform best over the last three months of the year. History may not repeat itself this time around.Airbnb Is Fundamentally Broken, Its CEO Says. He Plans to Fix It.

“We have a confluence of downward pressures from rising bond yields, the US dollar at its 11-month high, economic risks in China dragging for longer and elevated energy costs for the region’s oil-importers,” said Jun Rong Yeap, a strategist with IG Asia. “As long as these headwinds persist, traction in Asian equities may remain downbeat.”

China is confronted with a slew of issues, including sluggish consumer spending, a fragile real estate market and faltering exports amid tensions with the West. The problems pose an outsized risk as most of the region’s economies count China as their main trading partner.

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Dollar, China Imperil Asia Stocks’ Stellar Fourth-Quarter RecordSeasonality shows that Asian equities perform best over the last three months of the year. History may not repeat itself this time around.
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