Asia bulls are hoping regional equities can emerge as a relative haven after trailing for five quarters, as investors stateside worry about aggressive rate hikes from the Federal Reserve while those in Europe fret over the impact of the war in Ukraine.
Asia stock investors worried that the bond market’s signal of a US recession may trigger another bout of underperformance have a cushion to fall back on.
Factors such as a more stable macro environment, policy stimulus in China and a boost from reopening economies are giving them comfort that history won’t repeat itself. In the past, almost whenever the two- to 10-year Treasury yield curve has inverted – a bearish signal for the US economy that was again triggered last month – Asia has tended to underperform global peers.
