Markets

The experience that Chinese leaders gain in domestic politics has a big impact on how they view and handle international issues. Many China watchers and political analysts often overlook these domestic roots of Chinese foreign policy, particularly in China’s push...

 This is an eventful week, but the economic calendar starts slowly.  The FOMC meeting, first look at Q1 US GDP and the US jobs report, are the highlights.    The capital markets are also off to a slow start.  The...

  With its economy flat lining and being held up by oil and gas exports, Russia desperately needs to increase the scale of those exports. On the face of it the massive $400 billion deal Russia signed with China on...

There have been five important developments today, but price action has been mostly limited.  Confirmation that the Reserve Bank of New Zealand is pausing after hiking rates for the fourth consecutive time has sent the New Zealand dollar sharply lower....

The euro slipped through the low of the year and the weekly trend line going back to 2012. However, it found bids near $1.3460 and has recovered a bit.  The key on the upside now is $1.3500.  A move above...

Indonesia’s next president will need significant funds to fulfil election promises. But both candidates Joko Widodo (Jokowi) and Prabowo Subianto have expressed caution about international borrowings. So should Indonesia undertake the risks of borrowing from overseas? There is little consensus...

The US dollar is little changed to start the week. The apparent calm masks heightened geopolitical tensions in Ukraine and Gaza. Equity markets are trading heavy and this is helping to give the core bond markets, including US Treasuries, a...

Geopolitical events are overshadowing a light economic calendar ahead of the weekend.   The shooting down of the Malaysian plane over Ukraine and the Israel's launch of a ground assault in Gaza dominate the focus.  After a strong response that...

Since the mid-2000s, the South Asian region has witnessed an incoming wave of Chinese financial assistance. In some South Asian countries like Sri Lanka, China has overtaken traditional donors by highly engaging in post-war infrastructure development activities. So China’s engagement...

The US dollar is trading higher against the major currencies. Many observers are attributing dollar's gains yesterday and today to comments from Yellen. We are concerned that this is not a fair interpretation of Yellen, or necessarily of the market. ...

The launch of negotiations on the Trans-Pacific Partnership (TPP) (in APEC’s backyard led by the United States) and (later) the Regional Comprehensive Economic Partnership (RCEP) (under the umbrella of ASEAN) is dominating thinking about regional integration. These agreements are designed...

Recently, China's yuan has depreciated, and there is some evidence that Chinese officials got the ball rolling and may be continuing to guide the currency lower. This has been the cause of great consternation for G7 policy makers. Yet while the U.S....

This year is shaping up to be another challenging year for bond markets in Asia after a see-saw 2013 which saw prices rise at the start of the year, and then fall back on news that the US Federal Reserve...

Last month, tens of thousands of Chinese workers staged a massive strike at a shoe factory in Dongguan, lasting over two weeks and involving over 40,000 people. The strike was notable for both for its scale and substance – the...

The Chinese economy is on track to replace the U.S. as the world’s largest economy – measured by purchasing power parity (PPP) – by the end of this year, according to a recent World Bank report. But while emerging economies...