LIVE MARKETS-Watch out investors, it's the Year of the Snake

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WATCH OUT INVESTORS, IT'S THE YEAR OF THE SNAKE

Lunar New Year holidays across Asian markets are coming to an end, but investors should be wary, as Deutsche Wealth Management reminds us, the Year of the Snake is not traditionally good for stock markets.

Hong Kong's Hang Seng Index .HSI has risen about 2.8% in its first two days of trading after the holiday. But according to data from the index provider, its average performance in the Year of the Snake is a 13.9% decline, the worst of all 12 zodiac signs.

Deutsche Bank also reminds us that the Wall Street Crash of 1929, was in a Year of the Snake.

2001, with the aftermath of the bursting dotcom bubble was one too.

But - tortuous transition incoming - DWS' APAC CIO Ivy Ng, says in a note: "Snakes are also associated with wisdom, adaptability and strategic thinking in Chinese astrology. They are known for their ability to move with patience and precision through complex terrain – characteristics that are particularly relevant when we look at the economic and capital market outlook for China in 2025."

As for Chinese markets in this Year of the Snake, Ng expects stock markets to initially trade in a narrow range.

"A breakthrough in US-China relations later this year could provide some relief, but until then, uncertainties surrounding tariffs, geopolitical tensions and weak domestic demand will continue to keep investors cautious."

"In contrast the Chinese bond markets should offer relative stability despite growing challenges," Ng writes, flagging slower economic growth and rising debt levels as among the concerns.

(Alun John)

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