Mitul Kotecha , senior emerging markets strategist at TD Securities, suggests that weak Chinese trade data has major global ramifications as the front loading is likely over and the outlook for trade with China has deteriorated.
Key Quotes
“A US/China trade deal may offer some solace, but we think any relief to Asian trade will be small compared with the impact of slowing US and Chinese growth.”
“Similarly, Chinese stimulus is likely to be targeted and nuanced and will only be sufficient to prevent China experiencing a hard landing. Asia will not benefit greatly.”
“Tech sector weakness is already particularly apparent and the outlook for Asia’s tech exporters has worsened.”
“In Asia, Korea, Taiwan and Singapore are most vulnerable, with their currencies likely to feel growing downside competitive pressures in the months ahead.”
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