Henderson Far East Income Limited Fund Data

Asian equities fell sharply in March amid fears that the conflict in the Middle East will stymie economic growth in the region. The Strait of Hormuz, which is the epicentre of hostilities, carries a majority of Asia's oil and gas imports. Chinese equities fell, although they significantly outperformed the regional index. China's large stockpile of oil and renewable energy bolsters its capacity to insulate the economy should there be a protracted conflict in the Middle East. In early March, the Chinese government lowered its GDP growth target for 2026 to 4.5-5.0%, from last year's 5% goal, as policymakers pivot the economy towards higher-quality growth. Inflation picked up to a three-year high in February, which helped to ease some worries about deflationary pressures. The composite purchasing managers' index (PMI) expanded for the first time in 2026 (reflecting a pick-up in business confidence). Indian stocks fell heavily, with the relative weakness of the rupee worsening the decline in US dollar terms. The Indian currency hit a record low against the greenback during the month. The Reserve Bank of India intervened to support the rupee given that the Middle East provides about half of India's energy supplies. Strong selling by foreign equity investors further compounded losses in March. South Korean shares slumped from February's record high, as the uncertain economic outlook dimmed the prospects for artificial intelligence (AI) spending. Taiwanese equities fell sharply, as did Australian stocks. In the latter, concerns about elevated inflation prompted the Reserve Bank of Australia to increase interest rates for the second meeting in a row in March. Meanwhile, the composite PMI fell into contractionary territory for the first time in a year and a half.

Asian equities fell sharply in March amid fears that the conflict in the Middle East will stymie economic growth in the region. The Strait of Hormuz, which is the epicentre of hostilities, carries a majority of Asia's oil and gas imports. Chinese equities fell, although they significantly outperformed the regional index. China's large stockpile of oil and renewable energy bolsters its capacity to insulate the economy should there be a protracted conflict in the Middle East. In early March, the Chinese government lowered its GDP growth target for 2026 to 4.5-5.0%, from last year's 5% goal, as policymakers pivot the economy towards higher-quality growth. Inflation picked up to a three-year high in February, which helped to ease some worries about deflationary pressures. The composite purchasing managers' index (PMI) expanded for the first time in 2026 (reflecting a pick-up in business confidence). Indian stocks fell heavily, with the relative weakness of the rupee worsening the decline in US dollar terms. The Indian currency hit a record low against the greenback during the month. The Reserve Bank of India intervened to support the rupee given that the Middle East provides about half of India's energy supplies. Strong selling by foreign equity investors further compounded losses in March. South Korean shares slumped from February's record high, as the uncertain economic outlook dimmed the prospects for artificial intelligence (AI) spending. Taiwanese equities fell sharply, as did Australian stocks. In the latter, concerns about elevated inflation prompted the Reserve Bank of Australia to increase interest rates for the second meeting in a row in March. Meanwhile, the composite PMI fell into contractionary territory for the first time in a year and a half.