East Asia Update - July 2016

Monthly Highlights

• Great Britain's unexpected referendum to leave the European Union left the world in shock and triggered a temporary shock to the global financial system as capital flowed to the United States (US) and Japan.
• Capital flows to the US and Japan in the form of currency purchases led to the decline of US 10-year Treasury Notes and the appreciation of the Japanese yen. The yen's appreciation could potentially undermine the effort of the Japanese government to revive its economy as a strong currency leads to deterioration of export product competitiveness in international markets.
• ASEAN: Investment flowing into ASEAN markets is more likely in the form of short-term investment instead of foreign direct investment (FDI).

Download the July 2016 update.