REYL Singapore's Liew: Investors should be cautious on India

Korea performed well

A confluence of factors have presented the ideal backdrop for Asian equities to stage an impressive rally this year, but investors need to be selective, writes Daryl Liew, head of portfolio management at REYL Singapore.

The global economy is rebounding nicely, evidenced by global PMI indicators all over 50 and still expanding. The resulting pick-up in global trade has been a boon for Asian economies which are dependent on the global trade cycle.  Meanwhile, the USD has lost ground against most Asian currencies as the Trump-reflation trade unwound due to the failure to pass key legislation. This is important because Asian equities have traditionally struggled when USD strengthened, as these times coincide with outflows of funds from the region.  Finally, commodity prices have mostly been kept in ch...