The decoupling thesis -- that Asia is now more immune from what goes on at the Federal Reserve -- is being tested as 10-year U.S. Treasury yields hover near 3 percent.
Asian economies that reaped the benefits of low U.S. interest rates -- from record foreign inflows to subdued inflation -- are finding that rising U.S. yields and accompanying strength in the greenback are pushing up domestic borrowing costs, weakening currencies, and fueling capital outflows.
With Malaysia and the Philippines deciding on interest rates this week and Indonesia next week, the Fed’s moves are a key factor for central bank bosses once again. That’s especially true for economies dependent on foreign capital to finance their current account deficits: the Philippines, India and Indonesia. The three have the worst performing currencies in Asia this year.
Here’s how some of Asia’s biggest economies are affected by higher Treasury yields, starting with the three economies already being pressured:
Best Performing Stocks To Invest In Right Now: Empire State Realty Trust, Inc.(ESRT)
Advisors' Opinion:- [By Logan Wallace]
Prudential Financial Inc. cut its stake in Empire State Realty (NYSE:ESRT) by 0.5% in the 1st quarter, according to the company in its most recent disclosure with the SEC. The institutional investor owned 1,745,889 shares of the real estate investment trust’s stock after selling 8,046 shares during the quarter. Prudential Financial Inc.’s holdings in Empire State Realty were worth $29,313,000 at the end of the most recent quarter.
- [By ]
For example, nobody is going to come along and build another Empire State Building. In fact, you can actually invest in this building through the Empire State Realty Trust (NYSE: ESRT).�
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Empire State Realty Trust (ESRT) : "The yield on this one is too low."
DowDuPont (DWDP) : "I'm not running away, I'm sticking with them."
- [By Stephan Byrd]
Get a free copy of the Zacks research report on Empire State Realty Trust (ESRT)
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Best Performing Stocks To Invest In Right Now: International Paper Company(IP)
Advisors' Opinion:- [By Lisa Levin] Companies Reporting Before The Bell General Motors Company (NYSE: GM) is projected to report quarterly earnings at $1.24 per share on revenue of $34.66 billion. Bristol-Myers Squibb Company (NYSE: BMY) is estimated to report quarterly earnings at $0.85 per share on revenue of $5.24 billion. United Parcel Service, Inc. (NYSE: UPS) is expected to report quarterly earnings at $1.55 per share on revenue of $16.44 billion. Time Warner Inc. (NYSE: TWX) is projected to report quarterly earnings at $1.74 per share on revenue of $7.91 billion. ConocoPhillips (NYSE: COP) is expected to report quarterly earnings at $0.74 per share on revenue of $8.81 billion. PepsiCo, Inc. (NYSE: PEP) is expected to report quarterly earnings at $0.93 per share on revenue of $12.4 billion. American Airlines Group Inc. (NASDAQ: AAL) is estimated to report quarterly earnings at $0.72 per share on revenue of $10.42 billion. Southwest Airlines Co (NYSE: LUV) is expected to report quarterly earnings at $0.74 per share on revenue of $5.01 billion. Fiat Chrysler Automobiles N.V. (NYSE: FCAU) is estimated to report quarterly earnings at $0.8 per share on revenue of $34.52 billion. Union Pacific Corporation (NYSE: UNP) is projected to report quarterly earnings at $1.66 per share on revenue of $5.38 billion. D.R. Horton, Inc. (NYSE: DHI) is expected to report quarterly earnings at $0.85 per share on revenue of $3.76 billion. The Hershey Company (NYSE: HSY) is estimated to report quarterly earnings at $1.4 per share on revenue of $1.94 billion. Praxair, Inc. (NYSE: PX) is expected to report quarterly earnings at $1.56 per share on revenue of $2.94 billion. Altria Group, Inc. (NYSE: MO) is projected to report quarterly earnings at $0.92 per share on revenue of $4.63 billion. Shire plc (NASDAQ: SHPG) is estimated to report quarterly earnings at $3.54 per share on revenue of $3.72 billion. Oshkosh Corporation (NYSE: OSK) is projected to report quarter
- [By Asit Sharma]
As Packaging Corp diverts resources to a more promising business line, other paper and packaging companies are employing similar strategies. Last fall, paper and packaging giant International Paper (NYSE:IP) announced that it would convert its No. 17 machine at its Riverdale plant in Selma, Alabama, from uncoated freesheet production to linerboard and containerboard packaging. Scheduled for completion in mid-2019, the $300 million project will decrease the mill's annual uncoated freesheet capacity by 235,000 tons. Alternatively, it's projected to give International Paper an additional 450,000 tons of annual packaging capacity.�
- [By Joseph Griffin]
Tiverton Asset Management LLC grew its position in Champion International Paper (NYSE:IP) by 48.7% during the 1st quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The institutional investor owned 5,875 shares of the basic materials company’s stock after purchasing an additional 1,923 shares during the period. Tiverton Asset Management LLC’s holdings in Champion International Paper were worth $314,000 as of its most recent SEC filing.
Best Performing Stocks To Invest In Right Now: KNOT Offshore Partners LP(KNOP)
Advisors' Opinion:- [By Logan Wallace]
Carnival Cruise Line (NYSE: CCL) and KNOT Offshore Partners (NYSE:KNOP) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, profitability, risk, analyst recommendations, institutional ownership, dividends and earnings.
- [By Max Byerly]
ValuEngine downgraded shares of KNOT Offshore Partners (NYSE:KNOP) from a hold rating to a sell rating in a research note issued to investors on Monday.
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