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Asia’s greatest and worst inventory markets in Might battle Covid: India, Vietnam, Taiwan

Pedestrians wearing protective masks walk past the Bombay Stock Exchange (BSE) building in Mumbai, India, on Thursday, Jan. 21, 2021.

Dhiraj Singh | Bloomberg | Getty Images

India stocks were among Asia-Pacific’s top-performing markets in May, even as the country continues to grapple with tens of thousands of new cases every day.

For the month, the Nifty 50 rose 6.5% while the BSE Sensex was up 6.47%.

“The old phrase ‘go away and sell in May’ wasn’t true — at least for this month,” said Tuan Huynh, who is chief investment officer for Europe and Asia-Pacific at Deutsche Bank International Private Bank. “In the Indian case, I think it is relatively surprising.”

“The markets seem to like to differentiate between economic and obviously corporate earnings development versus then the rise of the new cases,” he told CNBC’s “Street Signs Asia” on Tuesday.

India has registered more than 28 million infections so far and is the second worst-hit country in the world in terms of caseload, according to data compiled by Johns Hopkins University. Daily cases have eased from the record high of over 400,000 at the start of May — but continue to hover above 100,000. That’s still quite high compared to other countries in the world.

U.S. investment bank Goldman Sachs is “overweight” on India, and expects stocks there to outperform.

“Markets tend to, as they say, live in the future and not in the present,” Timothy Moe, co-head of Asia macro research and chief Asia-Pacific equity strategist at Goldman Sachs, told CNBC last week.

He pointed out that there’s a “very concerning humanitarian crisis” in terms of a Covid surge in India. However, “the market is basically looking through that and expecting the rate of infections to come down, which indeed has taken place.”

Asia’s best and worst performers

Meanwhile, Vietnam was Asia-Pacific’s best-performing market in May — the VN Index jumping 7.15% for the month.

The gains came despite Vietnam’s Covid situation taking a turn for the worse in recent weeks. State-run media reported that social distancing measures were imposed in the country’s business hub Ho Chi Minh City starting Monday this week.

Elsewhere, stocks in Taiwan took a beating in May as rising cases of domestic infections prompted tighter restrictions.

The Taiex in Taiwan was Asia-Pacific’s worst performing market in May, and fell 2.84% for the month.

Taiwan was once hailed internationally for its initial response to the pandemic, which enabled life in Taiwan to remain largely undisturbed compared to elsewhere. However, a recent spike in infections has resulted in measures such as mandatory mask-wearing and limits on indoor and outdoor gatherings.

Total infections in both Vietnam and Taiwan remain comparatively low globally. Vietnam has reported more than 7,300 cases while Taiwan has seen at least 8,511 infections, according to Hopkins data.

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Business

Creating Asia’s first whole-plant primarily based various meat model

The appetite for alternative meat is growing worldwide.

With increasing awareness of the nutritional and environmental effects of meat consumption, producers and consumers are looking for various sources to meet the continuing demand for protein.

One of them is Dan Riegler, whose evolving relationship with meat inspired him to co-found Karana.

“I’ve been a vegan skeptic, a carnivore for much of my life, and I’ve taken a big turn,” Riegler told CNBC Make It.

A meat alternative for Asia

Karana is the food start-up in Singapore that is positioning itself as Asia’s first plant-based meat brand. The flagship – a substitute for pulled pork – is made entirely from jackfruit, oil, and salt, with no processed ingredients or preservatives.

Started in 2018 when the demand for meat alternatives increased, Riegler saw a market niche for meat substitute products that were specially developed for Asian cuisine.

We saw a great need to identify products with more local applications for APAC.

And Riegler

Co-founder Karana

“We saw a great need to identify products with more local applications for APAC,” said Riegler, now 35, who built a career in agricultural supply chains across Southeast Asia.

“Pork is the number one meat consumed in this region and we haven’t seen many products there that are really tailored to a need.”

Asia is responsible for producing and consuming half of the world’s pork.

CNBC

In fact, half of the world’s pork is produced and consumed in Asia, with most of that demand coming from China.

So Riegler and his co-founder Blair Crichton, formerly Impossible Foods, which also produces plant-based meat alternatives, set out to find an environmentally friendly alternative.

Creating Pork from Jack All

It wasn’t long before the couple identified Karana’s first product: a jackfruit pork substitute sourced from smallholders in Sri Lanka.

Jackfruit has a long history in South and Southeast Asian cuisine, especially in vegetarian and vegan dishes. The unripe young jackfruit is known for its tightly packed, fibrous texture and meat-like properties. It is widely used in savory foods, while the sweet ripe jackfruit is consumed raw.

Jackfruit is widely used in many South and Southeast Asian dishes.

CNBC

“Jackfruit as a harvest does not need irrigation, does not need pesticides, does not need herbicides. So it is a very robust tree, and when it bears fruit, it is very, very productive,” said Carsten Carstens, scientific director of Karana and first hire.

In fact, there are so many jackfruit in the region that tons of them are wasted every year. This is due in part to the complexity of the preparation and cooking.

We knew jackfruit was not reaching its potential.

And Riegler

Co-founder Karana

“The formats it was available in … just weren’t exciting to us. They were very difficult to work with, they didn’t give interesting textures and end results, and we knew jackfruit was not reaching its potential.” Said Riegler.

So the founders set about adapting the fruit for a mass market – and soon developed a chemical-free, mechanical process at their Singapore manufacturing facility to convert the fruit into a shredded, meat-like product that is easy for cooks and consumers to use.

“Our intention was really to create something that chefs can use to create fantastic dishes,” said Carstens. “It’s just too labor-intensive for the modern kitchen in a modern establishment (food and beverages).”

Opening up a growing market

Karana’s invention whets the appetite for more ethical and sustainable foods growing across Asia and beyond.

Even before the pandemic, the alternative meat market was estimated at $ 140 billion, or 10% of the world’s meat industry, within a decade.

The alternative meat industry is estimated to be worth $ 140 billion by 2029.

Barclays

Mirte Gosker, acting executive director of the Good Food Institute in Asia Pacific, said the demand for meat substitutes in Asia is increasing as awareness of food safety and nutrition increases.

“Here in Asia we see a real demand for healthy products with high nutritional value,” said Gosker. “And especially in China, one of the reasons people buy plant-based meat, actually the biggest reason, is a desire to lose weight.”

Animal husbandry is currently making the largest two or three contributions to the most pressing environmental challenges on our planet.

Myrtle Gosker

Acting Managing Director of the Good Food Institute Asia Pacific

In addition, the environmental impact of traditional animal husbandry is no longer sustainable.

“Animal husbandry is currently making the largest two or three contributions to the most pressing environmental challenges on our planet. These include air pollution, water pollution, water scarcity and loss of biodiversity,” said Gosker.

“If we didn’t use these fields to grow animal feed, we could actually use these fields for reforestation, to create greater biodiversity or, for example, for renewable energies,” she added.

Whet the appetite of investors

The investment community also sees the benefits of alternative proteins. Global investment in alternative proteins increased 300% in 2020 alone, according to the Asia-Pacific Good Food Institute.

In July 2020, Karana raised $ 1.7 million in seed capital from investors such as Big Idea Ventures, a plant-based food fund backed by Singapore state-owned investment company Temasek and US meat company Tyson Foods.

Karana’s flagship product is a pulled pork substitute made entirely from jackfruit, oil, and salt.

Karana

The investment fueled the company’s 2021 debut in Singapore, where the whole plant’s pork is now available and counted in nine restaurants – from dumplings to “ngoh hiang,” a local pork bun.

Next up is the Hong Kong launch as well as the launch of a range of ready-to-cook retail products. In the meantime, Karana will be able to continue experimenting with jackfruit and other whole plant meat substitutes by investing in a new innovation laboratory.

The more good products there are, the more consumers will increasingly switch to herbal products.

And Riegler

Co-founder Karana

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Business

AstraZeneca vaccine halt might gradual Asia’s financial restoration: Moody’s Analytics

SINGAPORE – Asia’s economic recovery could slow as more countries stop using the Covid-19 vaccine developed by AstraZeneca and Oxford University, Moody’s Analytics chief Asia-Pacific economist warned.

“It slightly increases the risk Asia is playing in terms of global economic turnaround,” Steve Cochrane told CNBC’s “Squawk Box Asia” on Tuesday.

Reports of blood clots in some people who received the AstraZeneca Oxford shot resulted in several countries – many of them in Europe – temporarily stopping using the vaccine. The World Health Organization said there was no link between the shot and an increased risk of developing blood clots and is investigating this.

Impact of vaccines on world trade

Cochrane said issues related to the AstraZeneca-Oxford vaccine could affect world trade – and that’s bad news for Asia, where many economies are dependent on trading activities.

The vaccine is of course a risk. One of the critical risks is that vaccines will have to be introduced later this year to get the world economy back on its feet.

Steve Cochrane

Asia Pacific Chief Economist, Moody’s Analytics

“There is a possibility that world trade will be adversely affected if the introduction of vaccines in Europe is delayed. This would result in a more stalled economy in Europe. This could slow the pace of world trade.” ,” he explained.

Asian countries have contained the virus with relative success, and this has helped their economies recover faster than those in Europe and the US

Fortunately, re-locks in some parts of Europe haven’t affected manufacturing, Cochrane said. He added that “almost all” of the effects of these lockdowns have affected the service sector.

“So right now it’s not that big of a problem, and world trade still seems very, very strong,” said the economist. “The vaccine is, of course, a risk. It is one of the critical risks. We have yet to see how vaccines are introduced later this year to get the world economy back on its feet.”

Thailand briefly stops the AstraZeneca vaccine

Thailand temporarily stopped using the AstraZeneca-Oxford vaccine on Friday, but authorities said Monday they would continue to administer the shots.

Thai Prime Minister Prayuth Chan-ocha was the first in the country to receive the AstraZeneca-Oxford shot on Tuesday, Reuters reported.

Elsewhere in Asia, Indonesia on Monday said it would delay the rollout of the AstraZeneca-Oxford vaccine while awaiting review by the WHO, the news agency reported.

– CNBC’s Sam Meredith contributed to this report.

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Business

‘Field’ or Gem? A Scramble to Save Asia’s Modernist Buildings

HONG KONG – When the General Post Office opened on the Hong Kong coastline in 1976, a local newspaper predicted that the modernist-style building “would certainly be as iconic” as its Victorian predecessor.

Not quite.

The building, with its white concrete facade, sharp angles and tinted glass, became an integral part of downtown Hong Kong. However, it was never included on the register of protected landmarks in the city. Now that Hong Kong officials were under pressure to generate revenue, the nearly 12-acre site, valued at over $ 5 billion, went up for sale this month.

Supporters of the building are trying to save it because whoever buys the land below has the right to demolish the post office.

“Some people in Hong Kong may think it’s just a white box,” said Charles Lai, an architect in Hong Kong, a Chinese territory, on an autumn afternoon outside the post office, where people were lining up to send packages.

“But actually, that simplified aesthetic is right where the value lies,” he added.

In cities across Asia, residents and design fans gather to rescue or document post-war buildings that officials believe are too new, too ugly, or too unimportant to save from demolition. Many of the buildings were urban buildings that served as the centers of civil life in the inner city. The campaigns are, so to speak, an attempt to preserve the collective memories stored in them.

The effort also reflects an aversion to the generic-looking malls and condos that have replaced modernist-style buildings in urban Asia, as well as the nostalgia of city dwellers watching their skylines change constantly.

Mr. Lai said the five-story Hong Kong Post Office building, designed by a government architect, was interesting because its shape defined the functions defined in it – a principle of the modernist movement that was popular in the 1920s-1970s. For example, customer floors have higher ceilings and larger windows than those for mail sorting machines.

“These are places that are part of people’s daily life. You don’t have to be very pretty to be meaningful, ”says Haider Kikabhoy. Those who lead historical walks in Hong Kong said about the city’s landmarks after the war.

For older buildings, authorities “usually focus on the rarity of the architecture, the design of the building, or the historical significance,” Kikabhoy said. “But there are many ways to understand history, and social history is just as important.”

In architecture, modernism expressed itself through “brutalism” and other styles that wanted to recall the conditions of the machine age and relied heavily on concrete as a material. The Barbican Center in London, which opened in 1982, is a classic example of the brutalist aesthetic – and was once voted the ugliest building in town.

In Asia, modernism influenced the design of landmarks like Tokyo’s Hotel Okura, which opened before the 1964 Olympics, and the dramatic curved concrete buildings designed by architect Leandro V. Locsin in the Philippines.

Some of the region’s modernist structures became instantly famous, while others had no following until recently. The interest seems to stem in part from a wider re-evaluation of brutalism in Europe and beyond, and the excitement of social media as people rediscover their unusual design features.

In some cases, buildings from the mid to late 20th century meet with public interest precisely because they are about to be demolished.

Since last year, two in Hong Kong – a 1967 office tower and a 1973 hotel – have been demolished, resulting in a reassessment of their architectural heritage.

In Thailand, ubiquitous symbols of whimsical modernist design – stand-alone cinemas – have almost been erased. Several hundred had shaped the landscape in its prime in the 1980s, said Philip Jablon, an independent researcher who wrote a book about it. The last one, La Scala, took place in Bangkok in July and made movie buffs lament the end of an era.

In Cambodia’s capital, Phnom Penh, a decade-long project documenting dozens of modernist buildings, the majority were found to have been destroyed or modified during a construction wave funded by foreign developers, said Pen Sereypagna, a Phnom Penh architect involved in the research effort was.

About 30 of the buildings were designed by Kannodsche’s most famous architect Vann Molyvann, who studied modernism in Paris with students of Le Corbusier.

In some cases, interest in modernist buildings has translated into conservation victories.

That summer, a conglomerate agreed to keep the Hong Kong State Theater, a quirky 1952 film house, as part of a redevelopment project. (Mr Kikabhoy, who worked to save the building, is now a paid consultant for the New World Development conglomerate.)

In Singapore, the Urban Development Agency announced in October that it would propose a plan to preserve the Golden Mile Complex – a huge, mixed-use building completed in 1973 that Dutch architect Rem Koolhaas once praised as a “unique work” – as part of a redevelopment the location on which it is located.

While not every modernist building in Singapore should be saved, said Karen Tan, founder of local design consultancy Pocket Projects, the protection plan for the Golden Mile Complex is “an actual affirmation of the importance of such buildings to the country’s social society and cultural identity. “

Historically, she added, the urban development model of the city-state “is based on a very tabula rasa biased approach to be demolished and rebuilt”.

Hong Kong has occasionally agreed to keep modernist buildings in the city center. Among them are the Police Married Quarters, a 1951 building that housed once married police officers and their families, and The Murray, a 1969 government building with tiled grating rests on huge white arches.

However, saving the General Post website presents new challenges.

Hong Kong Development Minister Michael Wong described the website as “very valuable and very strategic”.

The place is politically sensitive because it’s in the heart of Hong Kong’s waterfront, near the People’s Liberation Army property, at a time when the Chinese government is cracking down on the territory’s pro-democracy movement and has enforced a national security law that will take effect over the summer .

Supporters of the building expect the buyer to be a mainland China developer who may not be inclined to preserve a relic of the territory’s British colonial days, which ended in 1997.

Katty Law, a prominent proponent of the city’s modernist architecture, said of the post office, “They are looking at the money side, the amount of floor space they can generate, and how much the developer can build. You’re not looking at the building. “

A planning letter demands that some postal facilities be included in every new building on the site. However, proponents say that the existing post office itself has value.

They appeal to the city’s antiques council to reverse the 2013 decision to exclude buildings built in 1970 or later from the examination of protection status. Buildings like the General Post Office could be designed for “adaptive reuse” in a manner that generates new revenue – just as the Murray became a luxury hotel and the Police Married Quarters turned into a tangle of upscale boutiques.

The Hong Kong Development Bureau said in a brief statement that the Advisory Council’s policy has not changed. So the post office building may be at dusk.

Mr. Lai, the Hong Kong architect, said he was not sure what to make of the government’s stance on the building.

“The government, intentionally or unintentionally, treats this as something that can be replaced,” he said. “They don’t really see it as a symbol or emblem that makes people think, ‘Are you doing this on purpose to erase colonial history, or just can’t see the value?'”

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World News

Covid resurgence in Japan, South Korea may hit Asia’s financial restoration

Snow falls as people wearing face masks walk through the Asakusa district on March 29, 2020 in Tokyo, Japan.

Tomohiro Ohsumi | Getty Images

SINGAPORE – Towards the end of 2020, many investors are viewing Asia as the region with one of the best economic prospects for the next year as the coronavirus outbreak can be relatively better controlled.

However, a recent surge in Covid cases in some countries threatens to dampen the region’s economic outlook, some analysts have warned.

“For some of the Asian giants, this year’s problems with Covid-19 are unlikely to get better when the clock strikes 12 noon on New Year’s Eve,” said research firm Pantheon Macroeconomics.

However, many parts of Asia – where the virus first appeared – remain lower than in Europe and the US, data from Johns Hopkins University showed.

For some of the Asian giants, this year’s Covid-19 problems are unlikely to get better when the clock strikes 12 noon on New Year’s Eve.

But some countries are now struggling with a far worse resurgence than they did earlier in the pandemic. Even areas that have made great strides in containing the virus may not be spared. Taiwan this week reports its first locally transmitted case since April 12 – underscoring the difficulty in eradicating Covid.

Here’s a look at the Asian economies grappling with a renewed spike in coronavirus infections and how that would affect their economic prospects.

Japan

  • Covid-19 balance sheet: 207,007 cumulative confirmed cases and 2,941 deaths as of Wednesday, according to Hopkins data.

The number of daily reported coronavirus infections in Japan rose again in November and topped 3,000 for the first time last week, Hopkins data showed.

According to Reuters, medical groups in the country warned the pandemic will put a significant strain on the health system. However, Japanese Prime Minister Yoshihide Suga has failed to declare a state of national emergency – although he said he was suspending a travel subsidy program to slow the spread of the coronavirus, the news agency reported.

Economists at Pantheon Macroeconomics wrote in a Wednesday report that the Japanese government’s “relatively soft” rules on social distancing don’t appear to be working and that this could lead to tougher measures in the coming months.

“Therefore, a second and more effective nationwide state of emergency in Japan early next year cannot be ruled out,” the economists said. That would weigh on Japan’s economy in the first quarter of 2021, they added.

South Korea

  • Covid-19 Record: According to Hopkins, there were 53,533 cumulative confirmed cases and 756 deaths on Wednesday.

As in Japan, the daily incidence in South Korea reached unprecedented levels this month – above 1,000 for the first time since the outbreak.

But unlike in Japan, the government in South Korea has taken a tougher stance in response to the new wave of Covid cases.

The government on Tuesday announced a nationwide ban on gathering five or more people and ordered the closure of tourist attractions such as ski slopes and other winter sports facilities, Yonhap news agency reported.

This move, according to Pantheon Macroeconomics, would allow most of South Korea’s economic damage to be contained, for the most part, in the fourth quarter of this year.

Malaysia

  • Covid-19 balance sheet: 98,737 cumulative confirmed cases and 444 deaths on Wednesday, according to Hopkins data.

The Southeast Asian country kept Covid cases to a minimum before the recent surge from October, Hopkins data showed. This prompted the government to impose a new round of partial closure measures in some parts of the country.

Economists with consulting firm Capital Economics said the outlook for the Malaysian economy had become “less optimistic” this quarter, particularly in the area of ​​consumer spending.

“A second wave of the virus and the reintroduction of many restrictions on movement have reversed the sharp recovery in home consumption in the third quarter. Google’s high-frequency mobility data suggests social distancing continues to weigh on activity,” a report said Tuesday.

But the other parts of the economy – like exports – should continue to perform strongly, so the macroeconomic success of the recent resurgence is likely to be “much less” than the previous wave, the economists said.