Play It Safe and Sell on Any Rally in Emerging Asia Markets - Bloomberg

Play It Safe and Sell on Any Rally in Emerging Asia Markets - Bloomberg:

China may have handed traders a reprieve by disavowing the use of the yuan as a trade war tool, but a widening rift with the U.S. means investors may be better off selling into any relief rally in emerging Asian markets.

The trade war took a turn for the worse after Washington labeled Beijing a currency manipulator, days after vowing to slap more tariffs on Chinese goods. Even though the People’s Bank of China has said it won’t competitively devalue the yuan, its daily fixing has come under intense scrutiny for any signs of further weakening. 





“We continue to be negative on the Asia complex, particularly those that are very export oriented,” Erin Browne, a portfolio manager at Pacific Investment Management Co., said in an interview with Bloomberg Television. “So think about Singapore, Taiwan, Korea, which we think are going to continue to come under pressure with the trade tensions and potential weakening further of the yuan.”