GPR/APREA Index Report - April 2022

Concerns about inflation and slowing economic growth continued to depress capital markets in April. The U.S. reading for inflation hit 8.5% in March, the highest since 1981, recalling an era when interest rates were raised to near 20% under then Fed Chairman Paul Volcker. Markets came under pressure as escalating inflationary pressures are raising the likelihood of more aggressive rate hikes. This pushed the greenback to finish the month near two-decade highs. Monetary authorities in South Korea and Singapore also announced tightening moves. South Korea’s rate decision came after New Zealand delivered a larger-than-expected 50 basis point hike as more central banks across the region made preemptive announcements to shift their focus to fight surging inflation. The recent Covid-19 lockdown of Shanghai also led to concerns about China’s economic growth outlook and the potential for further global supply chain disruptions. With developments clouding global economic prospects, investors endured a torrid April. Total returns from Asia Pacific stocks, as tracked by MSCI, ended in the red. However, the region’s property stocks dealt with the volatility better, recording lower declines to outperform the wider equity market.