Amundi Asia Pacific Market Monthly Commentary - March 2022

Wednesday 20 April 2022

Market Commentary

Market sentiment remained soft in March amid ongoing commodity price volatility, hawkish central banks and higher inflation. Following the first rate hike since 2018, the Fed hiked rates by 25bps during the month. Expectations rose for a more aggressive response, including the potential of 50bps hikes at future meetings this year. Asian investors now pondered whether regional central banks will imminently follow in the Fed’s footsteps.

There was a revival in reopening optimism over the course of the month, with major Southeast Asian countries easing, if not lifting, social distancing measures.

Against this backdrop, MSCI Asia ex Japan Index was down -2.93% in March (in USD terms, net dividends excluded), underperforming the MSCI World Index which returned 2.52% (in USD terms, net dividends excluded). China was the major laggard in the region while India and Indonesia delivered a moderate growth.


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