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Nikko AM Insights
Investment Insights by our experts and thought leaders
Green bonds: attractive opportunity in a changing sustainable investment landscape
by , — 05 July, 2024
In the current financial landscape, where ESG outflows are making headlines and greenwashing risks remain in the spotlight, one trend stands out—the surge in green bond issuance.
Global Investment Committee’s outlook: still growing but proceed with caution
by , — 04 July, 2024
Our central scenario is for positive GDP growth in most major economies, with mild upside risks to growth in all regions but Europe. Within this central scenario, we anticipate range-bound inflation with a gradual disinflationary trend in the US and Europe. We expect reflation to continue in Japan and also to pick up in China.
Recently, China has been frequently appearing in global headlines, although many of these stories are not particularly encouraging. Amidst a fixation with the slowdown in the world’s second-largest economy, global markets may be missing the obvious, quieter China trade.
Balancing Act-Monthly insights: Multi-Asset Team-June 2024
by — 28 June, 2024
Markets have continued their strong growth through 2024, as odds continue to grow that central banks are able to walk the tight rope and avoid any real slowdown of global growth. US inflation has remained above expectations. However, some marginal softness is now appearing to flow through consumer spending and employment.
Japan’s equity markets: an active investment paradise
by , — 27 June, 2024
Japan Equity Investment Director Junichi Takayama explains how active management can help identify opportunities, particularly within the small and mid-cap markets.
Harnessing Change - Monthly Insights: Asian Equity-May 2024
by — 25 June, 2024
The early economic cycle dynamics and cheap valuations in Asia contrast starkly with the expensive late cycle dynamics in the West, and we expect this to provide good diversification options for global investors.
On the Ground in Asia-Monthly Insights: Asian Fixed Income-May 2024
by — 19 June, 2024
We have shifted to a mildly positive stance on overall duration, preferring high-yield markets such as India, Indonesia and the Philippines. We expect Asia credit to remain well-supported due to subdued net new supply as issuers continue to access cheaper onshore funding.
BOJ takes a slow, steady approach to reducing bond purchases
by , — 14 June, 2024
The Bank of Japan maintained interest rates at its June meeting, disappointing market participants who expected a reduction in monthly bond purchases. The BOJ signalled a future reduction in bond purchases but only at the next policy meeting in July, without providing further guidance on possible rate hikes or balance sheet reductions.
New Zealand Fixed Income Monthly (May 2024)
by , — 13 June, 2024
New Zealand's fixed income market has struggled so far in 2024 and inflation has remained high. However, there is growing confidence that the Reserve Bank of New Zealand will lower the Official Cash Rate in the next six to 18 months due to a slowing economy, with the expectation that inflation will retreat to the central bank's target range by the end of 2024.
New Zealand Equity Monthly (May 2024)
by , — 11 June, 2024
New Zealand’s equity market is currently facing challenging times. However, a sense that the country’s interest rates may have peaked are some of the indications that the market’s outlook may brighten.
