Andrew Swan from Man GLG highlights China’s weak economic performance, noting issues with consumption, GDP, investment, and deflation risks. He compares China’s situation to Japan’s stagnation 30 years ago. While China prioritizes currency stability by aligning its interest rates with the US, Swan believes potential US rate cuts could lead to capital inflows, easing financial conditions, but structural growth efforts remain crucial.
In Asia, Swan sees economies like Indonesia and the Philippines, which have kept interest rates high, as potential beneficiaries of US rate cuts, with Indonesia offering attractive growth and investment opportunities.
