Bloomberg Daybreak: Asia Edition Asia Stocks Advance as Fed Rate Cut Lifts Mood
13 snips
Dec 11, 2025 Jeff Grills, Head of U.S. Cross Markets and Emerging Markets Debt at Aegon Asset Management, explores the implications of recent Fed rate cuts on emerging markets and outlines expectations for future easing. Christina Woon, Portfolio Manager at Eastspring Investments, shares insights on Asian equities, particularly around the AI trade and opportunities in Korea. Both guests highlight the importance of selective investment strategies in the current market landscape, reflecting on the effects of a softer dollar and tight memory chip supply.
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Dollar Weakness Favors EM Local Markets
- Dollar weakness followed the Fed cut and pushed Asian equities higher.
- Grills notes EM local markets benefit from weaker dollar, but access to financing and rates matter most.
BOJ Tightening Feeds Regional Currency Strength
- A likely BOJ tightening would be unique to Japan but adds to dollar weakness and regional currency appreciation.
- Grills expects Asian currencies to continue appreciating as allocations diversify away from the dollar.
Be Selective In EM Credit
- Be selective in EM credit because spreads sit at multi-decade lows.
- Grills recommends focusing on specific sovereigns and metal/mining corporates rather than broad exposure.