We Turned More Cautious Towards Hang Seng, Says Morgan Stanley's Garner

The transcript discusses the impact of currency fluctuations on Hong Kong's market, highlighting the negative effects of the yuan's weakness. It examines broader Asian market trends, emphasizing the importance of export components. Economic concerns in Asia are analyzed, focusing on market cycles in autos and smartphones. The transcript compares market revisions between the US and Asia, noting the positive impact of US tax cuts. Finally, it addresses trade issues and Chinese industrial policy, stressing the economic impact of protectionism on Asia.

What is one reason for the negative translation effect in Hong Kong's market?

• The Hong Kong dollar is pegged to the euro.

• The Hong Kong dollar is independent of other currencies.

• The Hong Kong dollar is pegged to the yuan.

• The Hong Kong dollar is pegged to the US dollar.

Which market is noted for having a significant export component that might mitigate currency weakness?

• India

• Taiwan

• Japan

• South Korea

What was a major concern regarding Chinese policy in the second section?

• Expansion of the tech sector

• Reduction in auto exports

• Increased trade with the US

• Policy tightening affecting economic growth

How did the US market perform in terms of earnings revisions compared to Asia?

• US revisions remained positive, while Asia's turned negative.

• Both US and Asia had positive revisions.

• Both US and Asia had negative revisions.

• US revisions were negative, while Asia's were positive.

What shift in focus is noted regarding trade issues in the final section?

• From the bilateral trade deficit to US industrial policy

• From Chinese industrial policy to the bilateral trade deficit

• From the bilateral trade deficit to Chinese industrial policy

• From US industrial policy to the bilateral trade deficit