March Headwinds Return for Asia Stocks, With a Twist
- Lower bond yields, valuations, vaccine progress offer comfort
- Great Hill raised China tech allocation after Fed decision
This article is for subscribers only.
It feels like deja vu for Asia, with a resurgent dollar, worries over bond yields and weakness in China threatening to weigh on stocks just as they did in March. But investors say the market is far more resilient this time.
Outweighing the negative impact of the hawkish pivot by the Federal Reserve are a deepening valuation discount versus major peers and falling coronavirus cases in the region. A slump in bond yields is also helping, with those on 10-year U.S. treasuries sliding to 1.44% from above 1.7% in March.