OUTLOOK
Outlook
Market Outlook 2019:
Australia and Japan Take Lead
Hong Kong Office REITs with exposure to non-CBD locations and
Singapore Industrials seen withstanding headwinds in wider economy
Sydney Harbour Front (Credit: Patrick McLachlan)
Our top country picks for 2019 are Australia and
Japan. We are less positive on Hong Kong and, to a
lesser extent, Singapore because both economies,
which are heavily trade-dependent, are in the
process of adjusting to a new normal due to the
U.S-China trade friction.
By Victor Yeung,
Although Japan has seen negative economic
growth in recent quarters, this contraction is
merely a reflection of the country’s structural
Chief Investment Officer,
Admiral Investment
28
29
population decline. One reason to be positive is
that the consumer price index, a key indicator
for inflation has remained in the black for more
than two years. While Japan’s plan to increase its
consumer tax in the second quarter of 2019 could
put the brakes on growth, government policies
such as public works, tax alleviation measures
and temporary reward programs for cashless
shopping will help to offset some of the negative
impact.