Amundi Asia Pacific Market Monthly Commentary - August 2021

Wednesday 15 September 2021

Market Commentary

Global markets performed well in August even US Federal Reserve Chairman Powell's Jackson Hole speech mentioned about tapering. In relation to inflation, Powell was modestly dovish, reiterating his view that the recent inflation news is likely to be transitory. Delta variant became majority of cases, but this did not put US and UK back to lockdown. Numbers of COVID cases in South-East Asia are still worrying, which Vietnam imposed lockdown in its capital as well as major cities. Regulatory overhang in China continued affect Hong Kong and China market, and China’s pledges for “Common Prosperity” made investors nervous on fiscal changes. Against this backdrop, MSCI Asia ex Japan Index was up 2.08% in August (in USD terms, net dividends excluded), slightly underperforming the MSCI World Index which gained 2.35% during the month (in USD terms, net dividends excluded).


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