Now, such investment is broadening to emerging countries with Morgan Stanley’s tracker of economies not including China now at its highest level since 2011. “It is going from synchronized growth to synchronized capex,” said Chetan Ahya, co-head of global economics at Morgan Stanley in Hong Kong. Much of the capex recovery can be chalked up to the booming production of smartphones and electric vehicles. Rising commodity prices, higher fiscal spending and improving domestic demand are boosting corporate spending elsewhere in Asia too. “Even as global interest rates start to rise, they will not go up fast enough this year to choke up investment.

Source: Mint February 26, 2018 03:00 UTC