Regional assets favored in March by ECB measures, scaled back expectations for Fed rate hikes

Regional prospects in 2016 remain on track against a fragile global macro environment. Sustained low world energy prices provide a positive, albeit probably smaller than last year, boost on growth momentum in 2016. Economic sentiment and high frequency releases in the region so far point to lower manufacturing confidence yet consumer related data are still holding up well. Global risk sentiment improves in March on ECB measures, scaled back expectations for Fed rate hikes. Regional bourses trail the broader rally Emerging Markets rally. Regional currencies retain a firm tone amid ECB stimulus and healthy growth prospects. Government bonds in the region extend gains on ECB action, Central Bank accommodative monetary policies.