As world stock markets end a turbulent six months near record highs, investors appear to be betting heavily that economies will recover quickly from the coronavirus crisis, fuelled by zero interest rates and abundant monetary and fiscal stimulus.
U.S. investors have ramped up investments in growth funds over the past few months on expectations of higher returns and safety, while they dumped value funds despite cheaper prices after this year's pandemic-linked selloff.
Indian bonds faced sharp foreign outflows in May on worries about rising domestic coronavirus infections, while other Asian fixed income markets attracted inflows on hopes for a swift economic recovery as countries eased lockdowns.
Foreign investors are buying Asian shares after dumping them over the past three months, as lifting of coronavirus lockdowns has boosted optimism regional economies are set for recovery.
Asian companies are at a higher risk of default in the coming quarters than last year, a Reuters analysis of their credit ratios showed, as the coronavirus pandemic has squeezed revenue and made it harder to refinance debt.
BENGALURU Profits at Asian companies have plunged by an average of 43% in the first quarter, the steepest decline in at least 9 years, with the oil and consumer sector hardest hit as the coronavirus pandemic kept people at home.
May 13 South Korean bonds attracted net foreign
inflows for a fourth successive month in April, thanks to their
higher yields and the country's strong finances, while other
Asian fixed income markets suffered outflows due to worries over
the economic impact of the coronavirus pandemic.
SINGAPORE/NEW YORK/BENGALURU As market volatility has eased after the mayhem of March, investors betting on a rocky economic recovery from the coronavirus crisis are buying shares of exchanges that are poised to profit if more turmoil ensues.