The prospects for the second half of 2022 look better in the emerging market as inventory rebuilds and the unwinding of supply chain disruptions are expected to fuel a more sustainable recovery than the pent-up rebound of 2021, Manulife Investment Management said in a statement.
It said that an improved growth picture and slower inflation are likely to bring global markets back to a Goldilocks regime, which should be far better for market returns and general risk assets.
Sue Trinh, Head of Macro Strategy, Asia, Manulife Investment Management, said: “Once inflationary and growth pressures ease, we expect global central banks to make a dovish policy pivot, which should create conditions that will allow for an extension of the economic growth cycle. While we expect uncomfortably high levels of inflation in the first half of 2022, they are likely to be driven by global supply issues, which can’t be addressed with interest-rate policy.
Ronald Chan, Chief Investment Officer, Equities, Asia ex-Japan, Manulife Investment said that in the near-term outlook for ASEAN is expected to improve as economies reopen, with most of the bloc’s countries relaxing movement and travel restrictions, albeit gradually.
“Strategically, Southeast Asia should play an important post-pandemic role in Asia’s economic trajectory. The “China Plus One” initiative has encouraged multinational companies to diversify their business lines and production bases into regional markets.” She said
