Asian shares dipped while the dollar strengthened broadly on Friday as U.S. bond yields soared on expectations U.S. President-elect Donald Trump's policies would stoke inflation. Asian shares dipped while the dollar strengthened broadly on Friday as U.S. bond yields soared on expectations U.S. President-elect Donald Trump's policies would stoke inflation. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS fell 0.2 percent, with Korean shares .KS11 off 0.5 percent. Australian shares eked out small gains of 0.1 percent. Japan's Nikkei .N225 also rose more than 1 percent to 6-1/2-month highs thanks to a weaker yen. On Wall Street, U.S. S&P 500 Index .SPX rose 0.2 percent while the Dow Jones industrial average .DJI jumped 1.2 percent, smashing through its previous record high set in August by almost 1 percent. In contrast, the technology-heavy Nasdaq fell 0.8 percent .IXIC, with Apple APPL.O dropping 2.8 percent. "The market's focus has shifted to Trump's … [Read more...] about Asian shares dip, soaring U.S. bond yields rattle emerging markets
Emerging market bond fund
WASHINGTON, October 11, 2010 - Fears are growing that the flood of cash into emerging markets could provide kindling for the next economic crisis and has already fueled simmering currency disputes. Amid sclerotic growth in the traditional strong markets of Europe, Japan and the United States, emerging giants like Brazil, China and India have become an increasingly attractive proposition to investors. Billions have been poured into Brazilian bonds, Chinese real estate and Indian equities, which promise better returns than can be found in New York, Tokyo or London. The Institute of International Finance has projected that around 825 billion dollars will gush into emerging economies this year, up 30 percent from 2009. While rapidly developing economies might welcome new investors, the sudden rush of cash is poising a host of problems from rising home prices to stronger currencies that make exports less competitive. "Already a very significant amount of money is following into … [Read more...] about Fears grow of emerging market ‘bubble’
Vietnam, Asia's second-best performing debt market this year, is attracting global bond funds anticipating faster economic growth and higher credit ratings. Fortis Investments, a unit of Belgium's biggest financial-services company, is adding to its holdings of bonds denominated in the local currency, the dong. Oppenheim KAG, part of Europe's largest privately owned bank, plans to buy debt when Vietnam sells dollar bonds for a second time. … [Read more...] about Global bond funds finding Vietnam attractive
A U.S. regulation that limits how much of its own capital a bank can put at risk is causing headaches for Morgan Stanley as it prepares to raise a new multi-billion-dollar global infrastructure fund, people familiar with the situation said. The regulation, called the Volcker rule, puts a cap on the amount of capital that Morgan Stanley can pledge to the new fund. That means senior executives at Morgan Stanley Infrastructure Partners will have to make do with a smaller share of the fund's profits, the sources said. … [Read more...] about Morgan Stanley infrastructure fund hit by Volcker rule
Carpe diem, Vietnam! Nevertheless, it's counting on strong demand when it taps the global bond market for $1 billion later this month. An audacious effort that'll end badly? Not if you view Vietnam the way some global investors seem willing to: as the worst house on the best block in town. Even if its neighbors -- flush with foreign exchange, and better able to repay foreign debt thanks to strengthening currencies -- offer sounder investments, global bond funds are overloaded with cash and seeking yield. Vietnam will give them that. EPFR Global says $8.1 billion went into emerging markets bond funds in 2009, a record. In this context, Vietnam's move could be good market timing, particularly as it comes before interest rate increases in less risky parts of the sovereign debt world. For sure, this deal will serve as a test of just how discriminating global markets have become toward risk. One good sign for Hanoi: on Wednesday, the Philippines closed a $1.5 billion bond offering … [Read more...] about Will investors bond with Vietnam?