Are investors a bit too pessimistic about some of these Asian markets where you could find them a bit cheap in terms of
valuations. Yeah I mean I see value in certain markets. Think about one in
Korea the Asian tech universe. I'm just a little bit worried that we might not be completely
there yet. We need to see a couple of other things coming through. Earnings cuts and maybe some guidance on what happens
with demand in particular in the US in the course of the next couple of weeks or so. Volume value can be found anywhere in
Asia almost. China in particular I think looks rather interesting as well. So
your Asians are rather low things starting to pick up in China a little bit as well. Are all of the bad news or priced in whether
it's a global central bank tightening or just more regulatory crackdowns followed regulatory crackdowns. We don't know.
We will have to see how that is going to develop. My own suggestion is probably not going to see as much there really
into trying to recover in particular the property market. At the moment it seems like we've seen most of the regulatory crackdown
in China Internet as well. So in that sense we might have seen the worst on the front of global central banks in raising
interest rates and will continue probably for bond yields. The bond markets already looking towards well maybe they have to
ease into 2023 so that that's somewhat supportive as well. So really about demand directly for products will the ongoing
results season that's so stable such as for Wal-Mart or Apple. She got a bit of an idea of sell through that. That will be kind
of bought for us. That's where I would focus on. That the dollar strength starting to recede. Harold how much of
an uplift does that give to Asian equity markets. That is quite important actually.
A stronger dollar is simply just not good for Asian equities. If that would somehow turn and we're not in the same House why
forex colleagues see believe that maybe a little bit for the strength to go. But if if if we proved to be wrong in for
example the dollar would weaken that will be quite positive for Asian equities. So that's something we nearly have to watch as
well.
How strong is the consumer particularly when you're talking about the Chinese consumer.
Given that we're seeing some of these signs of demand weakness are seeing Apple cutting prices albeit you know just by 90
dollars but still it is a pretty huge symbolic shift. Right. Does a property crisis that we see in China have implications
for household wealth and the resilience of the consumer there. Absolutely. And the story is just not really groups. I mean
confidence. People are just not confident buying property at the moment.
People have sometimes lost money in either property companies or property projects. The stock market hasn't done too well. Of
course they've been in lock off periods as well. That hasn't necessarily helped either. Strong consumer confidence is not
very strong. Maybe it's on the margin improving here but it is not really
good. And that explains also the low valuations that we have in in large parts of Asia including in China.
The question is will it be stronger in say twelve months time or not. And if we do see kind of diminish the return of of
lockdowns we see that maybe the property market starts to slowly recover a little bit. It may well be that on the margin is going
to be a little bit better in about a year's time. And therefore the valuations will be a little bit higher in some of these
sectors as well. Are we going to see a recovery in the memory sector as well. I know that you said you like Taiwan and Korea
as well in terms of investors have been too underweight in those markets. Well investors are too underweight. And we a little bit
cautious on track in general. Asia is a hundred CAC. I'm talking much of that city Raymond Foundry and all these sort of things
because of the shell don't show through that. We see in the U.S. is just not really strong. So I think a little bit through the
earnings circuits might have to come through. But if you're really significantly underweight for the chicken
sector you've got to be careful because it could well be that we're very close to a bit of a bottom here. I wouldn't be
surprised the next couple of months or so that we see that sector really starting to offer good good value. Dani Burger red
would recover. Now that's something that we've been hoping for maybe in the latter part of early part of next calendar year or
so that that could be a signal that that sector suddenly is going to perform much better. So I don't really think it's a
time to really jump in yet but you're going to you've got to be ready to do so and not to be too cautious on the check to
either.