Group 1 - The core viewpoint is that Asian bonds are emerging as a resilient and rewarding alternative to traditional safe-haven assets, especially in the context of political and macroeconomic uncertainties [1] - Asian local currency bonds offer attractive real yields and potential for currency appreciation, making them appealing for investors looking to diversify away from dollar-denominated assets [1][11] - Asian dollar bonds are expected to provide higher returns and a more stable policy environment compared to developed market bonds, despite the narrower credit spreads relative to historical levels [1][7] Group 2 - The U.S. dollar index has decreased by 6.3% year-to-date, influenced by factors such as the expanding U.S. fiscal deficit and potential changes in Federal Reserve leadership, leading to uncertainty in the dollar's long-term trajectory [4] - Despite the large scale of foreign-held U.S. investment portfolio assets, the desire for investors to significantly increase their holdings in U.S. dollars and assets may be diminishing [4][6] - The supply of U.S. bonds is increasing, and inflation is rising, prompting U.S. fixed income investors to seek sufficient returns to compensate for duration risk, indicating potential upward pressure on long-term bond yields [6] Group 3 - Asian emerging markets are experiencing higher real yields, with countries like India showing nominal bond yields exceeding the latest inflation rates by over 420 basis points, indicating strong investment opportunities [11] - The demand for Asian local currency bonds is supported by lower inflation and higher real yields, which provide a strong investment rationale for these assets [11] - The offshore RMB market has undergone structural changes, with increased demand and improved liquidity, making offshore RMB bonds a preferred choice for investors seeking to enhance yield and extend credit duration [13]

Group 1 - The core viewpoint is that significant uncertainties from tariffs and U.S. policies will suppress global economic growth in 2025, with U.S. growth expected to slow to 1.2-1.5% and a downward risk bias [1] - The implementation of a 30% tariff on certain Chinese goods and a 10% tariff on all goods from other countries represents a tax increase equivalent to approximately 1.5% of U.S. GDP, marking one of the largest single-year tax hikes in decades [1] - The anticipated slowdown in U.S. economic growth and ongoing geopolitical pressures are expected to lead to further capital outflows from the dollar over the next year [1] Group 2 - Most Asian currencies are expected to strengthen to some extent due to the depreciation of the dollar, with controlled inflation in Asia and emerging markets providing central banks the space to cut interest rates to support economic growth [1] - The dual effect of currency appreciation and interest rate cuts is expected to enhance the attractiveness of Asian asset markets to international capital flows [1] - The uncertainty surrounding the long-term direction of tariff negotiations may continue to trigger intermittent market volatility, prompting investors to seek further diversification in their portfolios [1] Group 3 - Japan remains one of the lowest-valued markets globally based on price-to-book (P/B) ratios, while Chinese H-shares and A-shares still present attractive valuations for bottom-up investors [2] - Despite being perceived as overvalued at the beginning of 2025, the Indian stock market continues to show resilience due to supportive measures from the Reserve Bank of India, low oil prices, and stable domestic capital flows [2] - The bond market offers multiple opportunities to acquire quality assets at ideal valuations, with local currency bonds in Asia showing attractive investment prospects due to appealing real yields and strong economic fundamentals [2] Group 4 - Investors are advised to adopt a defensive strategy to cope with future market pressures, with low volatility strategies recommended to minimize downside risks while allowing participation in market uptrends [2]