Economy: Asia rebounds while the dollar loses its strength

It is a paradox that would frown the most experienced economists: while the dollar vacillates, the Asian economy is straightening up with almost insolent insurance. At a time when the American federal reserve is delays on interest rates, and when trade tensions seem to do not do without it without really dissipating, Asia benefits from an unexpected breath. Like what, even in the world monetary fog, some find their course.

Asian markets in full ascent: when caution becomes an engine

Asian stock markets did not wait for Wall Street green light to regain height. In a context where data on American inflation prove to be less virulent than expected, investors, never really reassured, have still been seduced by the scent of a commercial lull.

Result: the MSCI Asia-Pacific index (excluding Japan) offers a rebound of 1.1 %, while Hong Kong, led by JD.com and the e-commerce giants, climbs 1.4 %. We have seen darker warheads.

But behind this stock market awakening, the atmosphere remains cozy. The Fedimates, aware that the tariff negotiations, as calm as apparently, can at any time immerse the markets in a contagious feverishness.

It is therefore not an excitement, but a breathing. A breath of measured optimism, like an investor who keeps a hand on the railing, in case the bridge begins to pitch.

It must be said that the prospects for lower rates, although discussed, create a powerful psychological effect: that of foresight.

The Asian economy, often on the front line when it comes to commercial tremors, seems to want to capitalize on this strategic prudence. It is less the momentum than the mastery which dictates the trend. And that is perhaps what makes its strength.

Dollar at halfland: Asia dances while America doubts

Meanwhile, the dollar is gray. Assigned by persistent uncertainties around US trade negotiations and by a lack of clarity in upcoming monetary decisions, he lost 0.4 % against Yen.

The euro, on the other hand, remains stable, but the message is clear: international investors gradually abandon the American assets, deemed too exposed to the unpredictable.

According to an investigation From Bank of America, global asset managers had not been so little engaged in the dollar for 19 years.

That is to say if confidence vacillates. And this disaffection benefits, not surprisingly, from other more dynamic economic poles. By reducing their exposure to the greenback, the funds redirect their capital to markets deemed more agile, more connected, and sometimes more resilient.

But beware: it is not so much the weakness of the dollar that propels Asia as its own ability to transform uncertainties into opportunities.

Japan, for example, observes its gains in moderation, while China tries to stabilize its relations with the United States without too much noise. It is a diplomatic dance that is played out there, where each misstep could compromise everything, but where each measured step can raise the auctions.

At present, nothing has yet been acquired. The trade war between Beijing and Washington is only on a break, and the dollar could regain muscle if the Fed decides to tackle the tone.

However, Asia is advancing. Slowly, cautiously, but surely. Between still cautious investors, a doubt that doubts and a world looking for its bearings, it reinvents its balances. The economy here is not a race. It is an endurance strategy. And for the moment, Asia is rhythm. In this climate, Bitcoin is essential. While the dollar loses in attractiveness, investors turn cautiously towards cryptocurrencies.