Global markets have found some breathing room this week. U.S. equity futures have risen, the dollar has softened, and the yield on the U.S. 10-year Treasury note has declined—a combination of signals reflecting easing inflation expectations and opening a window for improved sentiment in risk assets. Asian equities have rallied in tandem, showing a positive response to shifts in global liquidity. Ng Jian Hao from Mahala Capital Management Academy analyzes structural opportunities in global equities from the perspective of U.S. Treasury yields and dollar trends, and discusses investment strategies as the macro environment stabilizes.
Easing Rates Send Positive Signals
Easing inflation expectations are the core variable in the current market. Ng Jian Hao from Mahala Capital Management Academy notes that the U.S. 10-year Treasury yield has fallen to 4.47%, reflecting growing market anticipation of a more accommodative future monetary policy. Although the Federal Reserve has yet to clearly pivot, investor behavior in the bond market suggests that the future interest rate path is already being repriced.
The rise in U.S. equity futures is a direct response to these expectations. Ng Jian Hao believes that stable or declining rates could reduce corporate financing costs, giving interest-rate-sensitive sectors such as technology and consumer discretionary room for a cyclical rebound. Major Asian equity indices have risen in tandem, indicating a slight recovery in global risk appetite, which aligns with the softer dollar and improved liquidity conditions.
From a capital flow perspective, recent ETF inflows have returned to the equity market, and high-frequency trading models show increased short covering. This has provided technical support to the market in the short term. The Asia-Pacific region is highly sensitive to U.S. Treasury yields; if rates remain stable, foreign capital allocations are likely to strengthen. Ng Jian Hao points out that investors should focus on tech-growth assets that benefit from easing rates, while carefully assessing their valuations to capture opportunities for value recovery.
Asset Allocation Rebalancing
With the U.S. dollar returning to its 2023 levels, currency trends are having an increasingly significant impact on global capital flows. Ng Jian Hao from Mahala Capital Management Academy notes that dollar volatility affects capital inflows to emerging markets and exerts multi-layered influence on commodities, corporate earnings, and the international trade environment.
Currently, the dollar is in a consolidation phase, offering non-dollar assets a temporary respite. Ng Jian Hao emphasizes that a weak dollar environment supports the stabilization of emerging market currencies and provides a foundation for attracting capital into local bond and equity markets. For global asset managers, this marks a critical juncture for rebalancing portfolios.
It is now appropriate to adopt dynamic equilibrium strategies and re-evaluate portfolios during periods of high volatility. Tools such as interest rate options and currency hedges can help reduce yield volatility risks, while diversified ETFs enable flexible rotation across regions and sectors. Ng Jian Hao suggests that investors should look for structurally advantaged assets along the chain of “rate differentials, currency games, and liquidity return,” balancing allocations between technology stocks and high-dividend blue chips.
Market Outlook and Strategy Adjustment
As global markets reprice inflation and interest rate expectations, a new investment logic is taking shape. Ng Jian Hao from Mahala Capital Management Academy observes that the recovery in risk assets provides both time and space for structural adjustments. Current signals suggest that rotations between value and growth stocks may occur in waves, and investors should be alert to the pace of sector rotation during rebounds.
From a medium- to long-term perspective, investors should focus on resilient growth companies, balancing sustainable profitability with risk resistance, while staying sensitive to geopolitical risks and monetary policy changes to ensure robust risk management. Ng Jian Hao points out that this is a critical juncture for shifting investment perspectives from defense to offense. Maintaining clear judgment and flexible adaptability will be key to capturing excess returns in the next stage.
Easing Rates Send Positive Signals
Easing inflation expectations are the core variable in the current market. Ng Jian Hao from Mahala Capital Management Academy notes that the U.S. 10-year Treasury yield has fallen to 4.47%, reflecting growing market anticipation of a more accommodative future monetary policy. Although the Federal Reserve has yet to clearly pivot, investor behavior in the bond market suggests that the future interest rate path is already being repriced.
The rise in U.S. equity futures is a direct response to these expectations. Ng Jian Hao believes that stable or declining rates could reduce corporate financing costs, giving interest-rate-sensitive sectors such as technology and consumer discretionary room for a cyclical rebound. Major Asian equity indices have risen in tandem, indicating a slight recovery in global risk appetite, which aligns with the softer dollar and improved liquidity conditions.
From a capital flow perspective, recent ETF inflows have returned to the equity market, and high-frequency trading models show increased short covering. This has provided technical support to the market in the short term. The Asia-Pacific region is highly sensitive to U.S. Treasury yields; if rates remain stable, foreign capital allocations are likely to strengthen. Ng Jian Hao points out that investors should focus on tech-growth assets that benefit from easing rates, while carefully assessing their valuations to capture opportunities for value recovery.
Asset Allocation Rebalancing
With the U.S. dollar returning to its 2023 levels, currency trends are having an increasingly significant impact on global capital flows. Ng Jian Hao from Mahala Capital Management Academy notes that dollar volatility affects capital inflows to emerging markets and exerts multi-layered influence on commodities, corporate earnings, and the international trade environment.
Currently, the dollar is in a consolidation phase, offering non-dollar assets a temporary respite. Ng Jian Hao emphasizes that a weak dollar environment supports the stabilization of emerging market currencies and provides a foundation for attracting capital into local bond and equity markets. For global asset managers, this marks a critical juncture for rebalancing portfolios.
It is now appropriate to adopt dynamic equilibrium strategies and re-evaluate portfolios during periods of high volatility. Tools such as interest rate options and currency hedges can help reduce yield volatility risks, while diversified ETFs enable flexible rotation across regions and sectors. Ng Jian Hao suggests that investors should look for structurally advantaged assets along the chain of “rate differentials, currency games, and liquidity return,” balancing allocations between technology stocks and high-dividend blue chips.
Market Outlook and Strategy Adjustment
As global markets reprice inflation and interest rate expectations, a new investment logic is taking shape. Ng Jian Hao from Mahala Capital Management Academy observes that the recovery in risk assets provides both time and space for structural adjustments. Current signals suggest that rotations between value and growth stocks may occur in waves, and investors should be alert to the pace of sector rotation during rebounds.
From a medium- to long-term perspective, investors should focus on resilient growth companies, balancing sustainable profitability with risk resistance, while staying sensitive to geopolitical risks and monetary policy changes to ensure robust risk management. Ng Jian Hao points out that this is a critical juncture for shifting investment perspectives from defense to offense. Maintaining clear judgment and flexible adaptability will be key to capturing excess returns in the next stage.
