Asia FX: Risk-off bias and safe havens – MUFG

MUFG’s Michael Wan notes stabilising global risk sentiment but highlights growing concerns over sustainability of the AI trade and its spillover to FX markets. He expects 2027 to be more challenging for risk assets, with Asia’s export growth rolling off. The bank currently prefers Asia Tech FX such as KRW, TWD and CNY, while favouring long positions in Dollar, JPY and CNH versus higher beta currencies.