We Are Positive on EM FX and Equities, Says State Street's Luk

The video discusses the impact of Congressional gridlock on the dollar, emphasizing a weaker dollar environment that benefits emerging markets (EM). It highlights the undervaluation of EM equities and currencies, suggesting a positive outlook despite trade uncertainties. The focus shifts to Chinese equities, driven by policy stimulus and government support, which is expected to boost local markets and eventually benefit broader Asian and EM equities.

What is the immediate effect of political gridlock in Congress on the dollar?

• No change in the dollar

• Fluctuating dollar

• Weaker dollar

• Strengthening of the dollar

Why is there a positive outlook on EMF X&EM equities?

• Due to a strong dollar environment

• Owing to an anti-dollar environment and attractive valuations

• Because of increased investor interest

• Because of high valuations

What remains a significant uncertainty affecting emerging markets?

• Political stability

• Inflation rates

• Trade war and trade policies

• Interest rates

Which Asian market is expected to benefit first from the current conditions?

• South Korean equities

• Chinese equities

• Japanese equities

• Indian equities

What is one of the reasons for the positive outlook on Chinese equities?

• Decreasing infrastructural investments

• Policy stimulus and government support

• Lack of government intervention

• Rising interest rates