Analysts optimistic on Asian equity, bonds despite US Fed signalling fewer rate cuts

ALTHOUGH the “hawkish” projection of interest rate cuts by the US Federal Reserve for next year witnessed Asian markets – including Singapore’s – open in the red on Thursday (Dec 19), analysts remained optimistic on the outlook for both the Asia and Singapore equity and bond markets.

While there could be some initial volatility in the equity markets, the long-term outlook of the banking and manufacturing sectors in Singapore remains strong.

With a clearer view on rate cuts in 2025, bond investors will also benefit from less volatility due to shifting rate expectations, said analysts.