Nikko AM's Insight Print

Asian Perspective

Mar 2012 EU & US Rally Directly Benefitting Asian MarketsPDF
An Asian perspective of the global picture sees sentiment affected by developments in the eurozone – and a positive sign is it is now less fragile than a few months ago.
Jan 2012 India – Looking Beyond the Near Term GloomPDF
With confidence amongst foreign and domestic investors alike at an all time low, Andrew Holland explores the long-term opportunities for India.
Dec 2011 Easing Liquidity Pressure in the MarketPDF
On November 30, 2011 a coordinated agreement by the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve and the Swiss National Bank lowered the pricing on the existing temporary US dollar swap arrangements by 50 basis points. The People’s Bank of China announced on the following day that it was cutting the Reserve Requirement Ratio (RRR) by 50 basis points.
Oct 2011 The AUD: A strong alternative for turbulent times?PDF
With countries previously viewed as safe havens experiencing extreme turmoil, it could be said that Australia and its currency are now being viewed as a new port of call in times of crisis. Roger Bridges shares his views.
Sep 2011 Reconstruction expected to contribute to economic revivalPDF
Takashi Maruyama provides insight into several factors which now point to a revival of Japan’s economy.
Sep 2011 Japan: Positioned to benefit from Asian growthPDF
There are concerns in the US and Europe that current economic woes will cause consumers to stop consuming, companies to stop investing, and banks to stop lending – leading to a collapse in demand and economic deflation, such as that felt in Japan for the past two decades. Takashi Maruyama shares his views.
Aug 2011 Keeping your head during market turmoilPDF
The MSCI Asia-Pacific ex Japan Index fell more than 13% in a week (to 8 Aug) on more bad news on US economic weakness, as well as the S&P downgrade of US sovereign debt. Soo Nam Ng shares his views on prospects for Asia.
Jul 2011 Policy responses to tackle India’s inflation conundrumPDF
India’s economic growth story is well recognised, although high inflation remains one of the biggest impediments to sustaining its remarkable progress on a long-term basis. Aditya Palwankar and John Vail explore solutions.

Global Insights

Mar 2012 Brazil Cuts Policy Rate to 9.75% PDF
Brazil’s central bank surprised consensus by cutting 75 bps instead of 50 bps to 9.75%. To understand why, one must understand the background.
Feb 2012 Greece Bailout Package is Good News PDF
Global investors now have much less to fear regarding Europe. The EU’s most difficult matters have now been addressed and only detailed implementation of these measures lies ahead.
Jan 2012 Investment Forecast 2012 PDF
Our view is that US growth will be even better than we expected a quarter ago, but that the Eurozone will be somewhat deeper in recession than we previously predicted. We continue to think that China will disappoint economically, but not fall into crisis. Global equities, along with global growth, will continue upward in volatile fashion, as there is a bit too much generalized fear in the markets, especially regarding a Eurozone collapse.
Jan 2012 Eurozone Downgrades; Greece Talks Resume PDF
The downgrades were widely expected, but were not quite as bad as they could have been; they seem to be quite logical. We believe that further downgrades by the various rating agencies are likely ahead.
Dec 2011 Eurozone Summit Brings Forward Fiscal and Political Union PDF
The founders of the Eurozone always knew that a fiscal and political union would be inevitable sooner or later. Some have suggested that they even knew that a crisis would be required to implement such a union, and as such would likely be a very messy affair.

Japan's Economic Revival: A Fresh Ascent
Nikko AM's Monthly Economic Reports

Feb 2012 Upbeat Global Economy Aids Stock MarketsPDF
Jan 2012 Improved business sentiment in the manufacturing sector to stoke global economic recovery expectationsPDF
Dec 2011 What Can History Tell us About Japanese Equities in 2012? PDF
Nov 2011 Equity Indices Bottom Out as Spreads Widen PDF
Oct 2011 Stocks with High Dividend Yields Gaining Attention PDF
Sep 2011 Increasing Mergers & Acquisitions by Japanese CompaniesPDF
Aug 2011 Revised Consumer Price Index StandardsPDF
Jul 2011 Significant Improvements in Business Sentiment in North East JapanPDF
Jun 2011 Production Recovery Boosting Japanese EquitiesPDF
May 2011 Foreign Investors Continue to Buy Japanese EquitiesPDF
Apr 2011 The Financial Market Following the Japanese Earthquake DisasterPDF
Mar 2011 Increased Capital Investment Expected with Continued Recovery in Production and Operating RatiosPDF

Global Currencies

Jan 2012 Global Currency Investor Q1 2012PDF
Peering through the fog of 2012. With Europe crawling toward a solution to its crisis, the US Presidential election on the horizon, worries about China’s economy commonplace and geopolitical tensions becoming elevated, 2012 is a more uncertain year than most. However, there is good reason to believe that markets will end the year in a stronger position than they started.
Sep 2011 Fixed IncomePDF
Weathering the Storm – the Australian Dollar in a Post-GFC World
Mar 2011 Brave New World for BondsPDF
Conventional wisdom suggests fixed income investment can't perform well and be good for the environment - we beg to differ.