State Street's head of Asia‑Pacific investment strategy and research said with
US midterm elections approaching Asian investors should prioritize market moves
in U.S. Treasury yields, the dollar and corporate credit spreads rather than
treating congressional outcomes as direct buy/sell triggers. The core issues for
Asia are whether the US policy outlook will dent export demand and whether tech
investment can be sustained. For bondholders the key question is whether inf and
fiscal risks will continue to push global borrowing costs higher. Greater policy
clarity after the vote could lift sentiment but will not necessarily lower
rates; investors should not assume the election will alter the monetary policy
Given the backdrop given the Fed still describes inf as elevated.
