Politics & Policies

If we look at the major central banks worldwide, it would appear that inflation is under control, and unemployment has not spiked, which for many suggests “immaculate disinflation”. This scenario involves high inflation eventually being brought under control without what many would see as a natural increase in unemployment. However, this may not be the case worldwide.

While the Japanese economy is improving and we are on the verge of moving from negative to positive interest rates, there are still many challenges ahead. We know the Bank of Japan is on the brink of increasing interest rates for the first time since 2006, but they need to appreciate the broader repercussions.

Those who follow the APAC region will be aware of Japan’s thriving stock market, exceeding the previous all-time high after a 34-year wait. Bizarrely, while interest rates are still in negative territory and economic concerns prevail, we are seeing stock-market valuations last seen before many of the batch of current traders were even born. We also know that only a fraction of Japanese household cash reserves are invested in the market, leaving potentially huge upside even from these record highs.

As the Ukraine/Russia war continues and friction emerges across the Middle East, it is important to be aware of geopolitical risks and their impact on global markets. As we have seen in the past, they can significantly weaken the global economy, which then filters down into national economies and specific sectors.

As we move into 2024, the APAC region has high expectations for technological advances. We know that new technology is impacting every area of business, but where are the game-changing roles and what type of services will attract the attention of investors in 2024?

There is no doubt that the development of blockchain will impact all areas of business, with a particular focus on the financial services industry. As Hong Kong, along with the likes of Singapore, has taken a very proactive approach to this new technology, it makes sense to look at the potential impact in more detail.

It is no secret that the Hong Kong stock market has enjoyed a period of relative joy, working with Chinese counterparts and those overseas. Only last month, we saw the makings of a deal with Saudi Arabia, which will see dual listings for several companies. One of the often forgotten factors for international investors is currency, particularly the risk to capital and income.

The Organisation for Economic Co-Operation and Development (OECD) recently updated numerous economic and inflation projections for 2023 and 2024. In this article, we will look at the updated forecasts for the leading APAC economies in what are fast-changing times.

The Asia-Pacific Workforce Hopes and Fears Survey 2023, produced by PricewaterhouseCoopers, cast an interesting light on the APAC region. This area leads the global economy and is expected to strengthen this position in the short, medium and longer term. So, what did the Asia-Pacific Workforce Hopes and Fears Survey 2023 tell us?

Indonesia is forecast to be one of the largest economies in the world within the next 20 years, with the government’s proactive approach to business starting to pay dividends. However, a recent report by the Asian Development Bank suggests modest growth in the short-term but solid economic foundations as we advance.