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Golden Ten Data reported on March 31 that Shin Hyun-song, the nominee for governor of the Bank of Korea, downplayed the significance of the recent decline in the local currency exchange rate and, as he prepared for his confirmation hearing, cautioned against simply labeling policy stances as “dovish” or “hawkish.” Speaking to reporters in Seoul, Shin stated: “The exchange rate level itself does not hold that much significance, so it should not be over-interpreted.” He added that, despite the weakness of the Korean won, indicators of US dollar funding conditions remain solid. On Tuesday, the exchange rate of the Korean won against the US dollar touched 1528.6, its lowest level since the global financial crisis. Shin commented: “Indicators related to US dollar liquidity are actually quite robust, so there is less need now than in the past to directly link exchange rate fluctuations to financial instability.” His remarks suggest that under his leadership, the Bank of Korea may shift away from directly equating exchange rate volatility with financial risk.

Glonghui March 31｜Greggory Warren of Morningstar stated in a report that as the private credit market faces headwinds, Blackstone’s credit and insurance divisions may experience reduced fundraising and increased redemptions. The analyst noted that the outlook for private credit is bleak due to the way an exchange treats certain private credit funds, which has dealt a heavy blow to asset managers with alternative credit products such as Blackstone. He added that concerns over artificial intelligence (AI) disrupting software companies are also contributing to the pressure, as software companies are a direct lending sector for many private credit funds. Warren said that although Blackstone’s direct lending exposure isn’t as large as that of some peers and other exchanges, the alternative asset manager still has significant private credit exposure and will be affected in coming years. Morningstar has lowered its fair value estimate from $175 to $145.

Golden Ten Data reported on March 31 that due to concerns about the long-term closure of the Strait of Hormuz driving up global fertilizer prices, shares of Malaysian petrochemical producer Kossan Petrochemical have doubled this month. Analysts predict that if the waterway remains closed, the stock price will rise further. Since the outbreak of the Iran war, the stock has surged a total of 102%, making it likely to top the MSCI Asia benchmark index in gains by the end of this month. In contrast, the Asian benchmark has fallen by more than 13%. According to data, at least seven brokers have raised their ratings for Kossan Petrochemical this month. As Malaysia is one of the few net energy exporters in Asia, its stock market has stood out while the Iran war has disrupted global markets. Although foreign investors have sold off shares in most other emerging Asian markets, they recorded net purchases of USD 25.3 million in Malaysian stocks in March.