What’s top of investors’ minds this week?

1) Solid US Employment for now, but with worrisome inflation expectations – Friday’s US data showed robust employment growth with slowing, but decent real payrolls that should support consumption growth in Q1. However, the outlook remains for growth to slow from Q2. The challenge for the markets and the Fed is higher inflation expectations.

2) Japan GDP should justify a positive equity outlook – We see some downside risk to the consensus expectation for Japanese Q4 nominal GDP of 1.1% qoq. However, nominal GDP growth should rise in H1 supporting our constructive outlook for Japanese equities.

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Eastspring Investments

Founded in 1994, Eastspring Investments is a wholly-owned subsidiary of Prudential plc. Eastspring Investments (Singapore) Limited serves as a global hub for Eastspring Investments’ asset management business. Its deep understanding of Asian markets, paired with global perspectives, enables the firm to develop and deliver unique investment solutions for investors.

Information provided is general information and is for educational purposes only, and does not include, or constitute as, financial product advice.