Fewer wealthy Asians are upbeat about the world’s economic outlook, as US-China trade war drags on and weighs on sentiment
- Majority of investors are worried about volatility caused by the trade war, markets declining
- More than 3,800 investors surveyed globally, including investors in nine Asia-Pacific markets
Investors and business owners in the Asia-Pacific region have grown more cautious about the global growth outlook as concerns have increased about the ongoing trade war between the United States and China, according to a new survey conducted by UBS.
About 55 per cent of respondents expressed confidence in the global economic outlook over the next 12 months, down from 59 per cent of those surveyed at the end of the first quarter, UBS said. The survey canvassed more than 3,800 high-net-worth individuals in 17 global markets, including nine in Asia, in June and early July.
The vast majority – 80 per cent – are concerned about market volatility caused by the trade tensions and 83 per cent are worried about a potential decline in the markets, the survey found.
The trade war was the top concern among the region’s investors, along with long-term competitiveness of their home country and cybersecurity, according to the survey.
“Against this backdrop of low and falling interest rates, we focus our attention on income-enhancement strategies” such as high-yielding stocks, said UBS Global Wealth Management’s head of the region’s chief investment office Min Lan Tan. “The gap between regional dividend and bond yields is now close to the levels last seen in late 2015 when high-yield Asian stocks started to outperform. Furthermore, we emphasise global diversification, given central banks’ differing capacities to ease.”