Asia Heatmap: Is the Punchbowl Running Dry

The report warns of an overextended rally in tech and Asian equities as central banks pivot hawkishly and record IPOs threaten to drain market liquidity. Strategists recommend an overweight position in CNY, MYR, and TWD while underweighting the INR.

Key Takeaways

• 1.The multi-month rally in Asian equities and tech (semiconductors) is showing signs of overextension, suggesting a high risk of consolidation in June.
• 2.Global central banks are shifting toward more hawkish stances, including a new Fed Chair (Kevin Warsh) and expected hikes by the BoJ and ECB.
• 3.A record-breaking SpaceX IPO ($75bn) and other large listings in June could drain significant liquidity from equity markets.

Table of Contents

• Asia heatmap: is the punchbowl running dry?
• Is the punchbowl running dry?
• Can the tech frenzy continue?
• Deal or no deal on Iran
• Will hawks ruin the party?
• Tariffs headlines could gradually return
• China still doing its own thing
• Our latest FX weightings
• The Asia FX heatmap for June
• Our criteria behind the currency indicators
• Asia Monthly Charts – Macro
• Asia Monthly Charts - Markets
• Asia Forecasts

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