As Emerging Markets Sell Off, the Biggest One's Doing Fine
- Chinese stocks, currency and bonds show few signs of panic
- Trade war, deleveraging and rising rates cloud outlook
NatWest Markets Says Dollar Will Strengthen Slightly Against Asian Currencies
This article is for subscribers only.
Within a chorus of warnings about the threats facing emerging markets, little is being said about the largest of them all.
And with everything else that’s going on, why would you worry about China? Stocks are up this month in Shanghai, the yuan is at a two-year high against a basket of peers, and bonds are about as prized relative to Treasuries as they’ve been since 2016. A similar picture exists outside of financial assets, with the economy growing at a steady clip and domestic demand supporting imports -- including from emerging peers.