Asks for thoughts on Iran war implications for Asian economies, growth, and earnings.
Minmin Low
Kevin Schneider
China is less directly impacted by Iran war because only ~18% of its energy is crude oil, and only ~12% of that is from Iran. Korea, India, Japan are more dependent on crude/LNG and thus more exposed.
Asks how investors view China vs. Korea markets given China seen as safe haven but trading sideways, while KOSPI climbs.
Minmin Low
Kevin Schneider
Remains positive on Korea, anchored in memory supply needs, with KOSPI target of 7000 possible. Korea is where energy questions will be loudest. China is a diversified market with ~8% correlation to S&P.
Asks what he's hearing from global participants/policymakers on Chinese growth.
Minmin Low
Kevin Schneider
In Europe, question is about expiry date for China's export-led growth model, given EU imports from China up 28% while imports into China up only 11%. In US, debate is on rates and inflationary pressure from oil shock.
Asks about inflation view, noting cost-led inflation from oil could be dangerous way out of deflation.
Minmin Low
Kevin Schneider
Cost-driven inflation is not the same as demand-pull inflation; may only help upstream industrial part of Chinese economy, not a panacea.