Amundi Asia Pacific Market Monthly Commentary - November 2019
Thursday 16 January 2020
Markets ended 2019 on an extremely positive note with notable gains across most global equity markets amidst a broad risk-on sentiment. The main catalyst for the strong performance in December was the progress on trade negotiations between US and China. Although the terms of the Phase One trade-deal were vague, investor sentiment was boosted by the roll-back of US tariffs on USD$120 billion of Chinese goods from 15% to 7.5% and an agreement from China to increase purchases of US goods. Asian equity markets were among the top beneficiaries of the risk-on investor sentiment. MSCI Asia ex Japan rallied (6.42%, in USD terms, net dividends excluded) and significantly outperformed the MSCI World Index (2.89%, in USD terms, net dividends excluded).