An improved growth picture and slower inflation are likely to bring global markets back to a so-called “goldilocks economy” —not too hot, nor too cold, which should be far better for market returns and general risk assets, according to Manulife.
Manulife Investment Management sees a mixed bag for Asean markets this year. On the one hand, the region faces a slew of macro headwinds, including rising US inflation and rate-hike expectations, geopolitical tensions, spikes in Covid-19 cases and appearance of new variants dogging markets in recent months.
At the same time, prospects for 2H2022 look better, 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.
