On a cautious mode

In a Asia-Pacific equity research report, Credit Suisse opines that Asean is now more growth-sensitive and less rates-sensitive than before. The research unit notes that foreign ownership of equities has fallen, and the foreign presence in local bond markets is down substantially in the two markets (Indonesia and Malaysia) with the biggest dependence on foreign flows.

AGAINST the backdrop of global equity markets spooked by the threat of the US Federal Reserve (Fed) hiking interest rates and tapering asset purchases, Credit Suisse is expecting a vastly different outcome for Asean markets in this hiking cycle than during the 2013 taper tantrum, when eight years of underperformance set in.

In a Asia-Pacific equity research report, Credit Suisse opines that Asean is now more growth-sensitive and less rates-sensitive than before.