Guide To The Markets Asia

MARKET INSIGHTS
Guide to the
Markets
Asia | 1Q 2022 | As of December 31, 2021
Global Market Insights Strategy Team GTM ASIA 2
Americas Europe Asia
Dr. David Kelly, CFA Karen Ward Tai Hui

New York London Hong Kong
David Lebovitz Gabriela Santos Michael Bell, CFA Vincent Juvyns Marcella Chow Chaoping Zhu,
New York New York London Luxembourg Hong Kong CFA
Shanghai
Jordan Jackson Jack Manley Hugh Gimber, CFA Tilmann Galler, CFA Ian Hui
New York New York London Frankfurt Hong Kong
Meera Pandit, CFA Stephanie Aliaga Ambrose Crofton, Maria Paola Toschi Adrian Tong Shogo Maekawa
New York New York CFA Milan Hong Kong Tokyo
London
Olivia Schubert Nimish Vyas Jai Malhi, CFA Elena Domecq Sahil Gauba Agnes Lin
New York New York London Madrid Mumbai Taipei
Max McKechnie Lucia Gutierrez Mellado Clara Cheong Kerry Craig, CFA
London Madrid Singapore Melbourne
2
Page reference GTM ASIA 3
Regional economy Equities Other asset classes
4. Asia: Economic growth 31. Global and Asia equity market returns 65. Asset class returns
5. ASEAN: Exports and mobility 32. Global equities: Return composition 66. Asset class returns in high inflation environments
6. China: Economic snapshot 33. Global equities: Earnings expectations 67. Volatility
7. China: Cyclical indicators 34. Global equities: Inflation and profitability 68. U.S. dollar
8. China: Property sector 35. Global equities: Valuations 69. Currencies
9. China: Fiscal policy 36. Global equities: Growth versus value 70. Emerging market external positions
10. China: Monetary policy and credit growth 37. APAC ex-Japan equities: Earnings expectations by 71. Commodities
11. China: Exchange rate market and sector 72. Industrial metals
38. APAC ex-Japan equities: Performance drivers 73. Oil: Short-term market dynamics
39. APAC ex-Japan equities: Dividends 74. Alternative sources of income
Global economy
40. APAC ex-Japan equities: Exports and earnings 75. Understanding alternatives
41. APAC ex-Japan equities: Earnings trend by revenue
12. Global growth source
13. Global Purchasing Managers’ Index (PMI) 42. China: Sector earnings and valuations Investing principles
14. Global capital expenditures 43. China: Regulations
15. Global trade 44. China: U.S. listings 76. ESG considerations
16. Global supply chains 45. Europe: Sector earnings and valuations 77. Emissions targets and global energy mix
17. Global inflation 46. United States: Sector earnings and valuations 78. Performance of sustainable investing
18. Global central bank policy rate changes 47. United States: Sources of earnings per share growth 79. Developed market (DM) vs. emerging market (EM)
19. G4 central bank policy rates and market expectations yields
48. United States: Bull and bear markets
20. G4 central bank balance sheets 80. Equity annual returns and intra-year declines
49. United States: Interest rates and equities
21. Household savings and consumption 81. Fixed income annual returns and intra-year declines
50. United States: Interest rates and equity performance
22. COVID-19 vaccinations and infections 82. The compounding effect
23. Political calendar 83. Portfolio construction, asset class returns and
24. United States: Economic growth and the composition Fixed income volatility
of GDP 84. Correlation between stocks and bonds
25. United States: Business cycle thermometer 51. Global fixed income returns
26. United States: Employment and wages 52. Global fixed income: Yields and duration
27. United States: Inflation 53. Global fixed income: Return composition
28. United States: Infrastructure spending 54. Global fixed income: Valuations
29. United States: Monetary policy 55. Global fixed income: Government bond yields and
30. Eurozone: Economic snapshot expected inflation
56. Global fixed income: Yields and risks
57. U.S. Treasury yield breakdown and curve spread
58. U.S. real yields
59. U.S. investment grade bonds
60. U.S. securitized assets
61. U.S. high yield bonds
62. Emerging market debt
63. Asia fixed income
64. China bonds
3
Asia: Economic growth GTM ASIA 4
EM Asia ex-China* manufacturing PMI and real GDP growth

Regional economy
Index Year-over-year change

65 12%
60 8%
55 4%
50 0%
45 -4%
40 -8%
35 -12%
'04 '06 '08 '10 '12 '14 '16 '18 '20
Manufacturing PMI GDP growth
Source: IHS Markit, J.P. Morgan Economic Research, National Statistics Agencies, J.P. Morgan Asset Management.
Manufacturing Purchasing Managers’ Indices (PMI) are relative to 50, which indicates contraction (below 50) or expansion (above 50) of the manufacturing sector.
*Emerging Market (EM) Asia ex-China includes Hong Kong, India, Indonesia, Korea, Malaysia, Philippines, Singapore, Taiwan and Thailand.
4 Guide to the Markets – Asia. Data reflect most recently available as of 31/12/21.
ASEAN: Exports and mobility GTM ASIA 5
Exports Retail and recreation activity

Regional economy
Year-over-year change, 6-month moving average % of pre-COVID-19 activity baseline*

60% 20%
50% 10%
0%
40%
-10%
Recovery vs Baseline (%)

30%
-20%
20%
-30%
10%
-40%
0%
-50%
-10%
-60%
-20% -70%
'10 '12 '14 '16 '18 '20
Indonesia Malaysia Philippines Singapore Thailand ASEAN Global

Vietnam
Source: J.P. Morgan Asset Management; (Left) FactSet, National Statistics Agencies; (Right) Google. *Baseline refers to the pre-pandemic period of 03/01/20 – 06/02/20.
Mobility data is based on anonymized geolocation data from Google.
China: Economic snapshot GTM ASIA 6
Contribution to real GDP growth Caixin/Markit Purchasing Managers’ Indices

Regional economy
Year-over-year change Level

20% 65
11/2021: 52.1
12/2021: 50.9
60
16%
YTD 2021:
9.8% 55
12%
50
8%
45
4%
40
0%
35
-4%
30
-8% 25
'80 '85 '90 '95 '00 '05 '10 '15 '20 07' 08' 09' 10' 11' 12' 13' 14' 15' 16' 17' 18' 19' 20' 21'
Gross capital formation (investment) Consumption Services Manufacturing
Net exports GDP
Source: J.P. Morgan Asset Management; (Left) CEIC, National Bureau of Statistics of China; (Right) Caixin/Markit, J.P. Morgan Economic Research.
Purchasing Managers’ Index (PMI) is relative to 50, which indicates deceleration (below 50) or acceleration (above 50) of economic activities in the sector. Data for the
Caixin/Markit Purchasing Managers’ Services index begins from 31/10/08.
China: Cyclical indicators GTM ASIA 7
Fixed asset investment Consumption

Regional economy
Year-to-date, year-over-year change Year-over-year change, 3-month moving average

40% 40% 55%
30%
30% 45%
20%
20% 35%
10%
10% 25%
0%
0% 15%
-10%
-10% 5%
-20%
-30% -20% -5%

'11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '16 '17 '18 '19 '20 '21
Aggregate Private State-owned enterprises Retail sales Online sales
Source: CEIC, National Bureau of Statistics of China, J.P. Morgan Asset Management.
China: Property sector GTM ASIA 8
Property prices and land sales Structure of bank loans

Regional economy
Year-over-year change Outstanding loans as % of nominal GDP

30% 100% 180%
90%
25% 160%
80%
37 35
70%
20% 140% 34
60% 31
26 29
21
15% 50% 120% 18
17 46
40% 15 15 49
15
10% 100% 30 36 45
30% 27 39 42
23 23 25
22
20%
5% 80%
10%
0% 0% 60%
-10%
85 84 88
-5% 40% 78 79 80 82 81 77
-20% 75 75 77
-30%
-10% 20%
-40%
-15% -50% 0%
'10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '10
’10 ’11 '12
’12 ’13 '14
’14 ’15 '16
’16 ’17 '18
’18 ’19 '20 YTD ‘21*
’20
Residential property prices Land sales (year-to-date) Mortgage loans Property development loans Other loans
(3-month moving average)
Source: CEIC, National Bureau of Statistics of China, J.P. Morgan Asset Management.
*Data covers January to September 2021. Assuming 11% growth of nominal GDP in 2021. Forecasts, projections, estimates and other forward-looking statements are
based upon current beliefs and expectations. They are for illustrative purposes only and serve as an indication of what may occur. Given the inherent uncertainties and
risks associated with forecast, projections or other forward-looking statements, actual events, results or performance may differ materially from those reflected or
contemplated.
China: Fiscal policy GTM ASIA 9
Fiscal revenue and expenditure* Pace of central plus local government bond issuance**
Regional economy
Year-over-year change, 3-month moving average Share of full year quota

30% 100%
90%
20% 80%
70%
10% 60%
50%
0% 40%
30%
-10% 20%
10%
-20% 0%
'14 '15 '16 '17 '18 '19 '20 '21 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Revenue Expenditure 2019 2020 2021
Source: CEIC, J.P. Morgan Asset Management; (Left) Ministry of Finance of China; (Right) Wind.
*Fiscal revenue includes taxes, government funds, which are mostly derived from local government land sales, and other government revenues. Fiscal expenditure
includes government spending of funds raised from taxes, government funds and general bond issuance.
**The quota for government bond issuance is approved at the China’s National People’s Congress meeting each year and it refers to the planned net increase in
government bonds outstanding for that particular year. The approved total issuance quotas were: RMB 4.9trillion in 2019, RMB 8.5trillion in 2020 and RMB 7.2trillion in
2021. As of November 2021, 80.9% of overall government bond issuance quota for 2021 has been filled.
China: Monetary policy and credit growth GTM ASIA 10
Chinese credit impulse and global new orders Key interest rates
Regional economy
% of nominal GDP, year-over-year change Difference from one year ago Per annum
25% 35 7.5%
30
20%
25
15% 6.0%
20
10% 15
5% 10 4.5%
5
0%
0
-5% 3.0%
-5
-10% -10
-15
-15% 1.5%
-20
-20%
-25
-25% -30 0.0%

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '15 '16 '17 '18 '19 '20 '21
Credit impulse* Global composite Lending rate (1-year) Interbank repo (7-day)
(advanced 6 months) PMI - new orders Loan prime rate (1-year)** Deposit rate (1-year)
Medium-term lending facility (1-year)
Source: CEIC, People’s Bank of China (PBoC), J.P. Morgan Asset Management; (Left) Ministry of Finance of China; (Right) National Interbank Funding Center.
*Credit impulse measures the year-over-year change of credit flow (net aggregate social financing) as a percentage of nominal GDP. Rolling 12-month nominal GDP and
credit stock are used in the calculation. **In August 2019, the PBoC started to release 1-year and 5-year loan prime rates (LPR) on a monthly basis, which are based on
quotes from 18 large banks. LPR has become the benchmark for commercial loans and floating rate loan contracts.
China: Exchange rate GTM ASIA 11
Chinese yuan exchange rate

Regional economy
CFETS Index* USD/CNY

104 Dec. 15, 2021: Reserve ratio 5.5
Dec. 11, 2015: on forex deposit raised to 9%
Launch of the CFETS from 7%
Stronger CNY index 5.7
102 May 31, 2021:
Reserve ratio
on forex 5.9
Aug. 6, 2018: deposit raised
100 to 7% from 5%
Risk reserve ratio
for forward sales of 6.1
CNY raised to 20%
98 from 0% Oct. 12, 2020:
Risk reserve ratio for 6.3
forward sales of CNY
Aug. 11, 2015: cut to 0% from 20%
Market reform to 6.5
96
mechanism of CNY
exchange rate
6.7
94
Oct. 27, 2020:
Suspension of 6.9
Weaker CNY counter-cyclical
92 factor
May 26, 2017: 7.1
Introduction of counter-cyclical factors
to stabilize daily central parity
90 7.3
'15 '16 '17 '18 '19 '20 '21
CFETS CNY Index USD / CNY (inverted)
Source: China Foreign Exchange Trade Center, FactSet, J.P. Morgan Economic Research, J.P. Morgan Asset Management.
*CFETS CNY Index is the China Foreign Exchange Trade System basket of 24 currencies traded against the Chinese renminbi, where the base value was set at 100 as of
31/12/14. Past performance is not a reliable indicator of current and future results.
Global growth GTM ASIA 12
Real GDP growth

Quarter-over-quarter growth
4% 12.6%
11.7% 7.5% 5.3% Forecast
3%
Global economy
2%
1%
0%
-1%
-2%
-3%
-9.3% -9.0% -8.1%

-4% -11.5%
4Q '19 1Q '20 2Q '20 3Q '20 4Q '20 1Q '21 2Q '21 3Q '21 4Q '21 1Q '22 2Q '22 3Q '22 4Q '22 1Q '23 2Q '23 3Q '23 4Q '23
U.S. China Eurozone Japan
Source: J.P. Morgan Economic Research, J.P. Morgan Asset Management.

Y-axis has been cut to maintain a reasonable scale.
Global Purchasing Managers’ Index (PMI) GTM ASIA 13
Global manufacturing and services PMI Global manufacturing PMI breakdown

Index
65
Aug '21
May '21
Nov '21
Feb '21
Jun '21
Sep '21
Dec '21
Apr '21
Jan '21
Mar '21
Oct '21
Jul '21
60 Global 54.2 -
Global economy
DM* 56.9 -
EM** 51.2 -
55
U.S. (Markit) 58.3 57.7
U.S. (ISM) 61.1 -
50 Eurozone 58.4 58.0
Germ any 57.4 57.4
France 55.9 55.6
45
Italy 62.8 62.0
Spain 57.1 56.2
40 UK 58.1 57.6
Lowest point 04/20: 39.6
Australia 59.2 57.7
Japan 54.5 54.3
35
China (Markit) 49.9 50.9
China (NBS) 50.1 50.3
30 Korea 50.9 51.9
Taiw an 54.9 55.5
Indonesia 53.9 53.5
25
Lowest point 04/20: 23.7 India 57.6 55.5
Russia 51.7 51.6
20 Brazil 49.8 49.8
'99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21 Mexico 49.4 49.4
Manufacturing Services # m arkets above 50 13 15 15 15 15 13 13 12 13 15 13 14
Source: Australian Industry Group, Institute for Supply Management, J.P. Morgan Economic Research, Markit, J.P. Morgan Asset Management.
PMIs are relative to 50, which indicates deceleration (below 50) or acceleration (above 50) of the sector. Heatmap colors are based on PMI relative to the 50 level, with
green (red) corresponding to acceleration (deceleration). *Developed market includes Australia, Canada, Denmark, eurozone, Japan, New Zealand, Norway, Sweden,
Switzerland, UK and the U.S. **Emerging market includes Brazil, Chile, China, Colombia, Croatia, Czech Republic, Hong Kong SAR, Hungary, India, Indonesia, Israel,
Korea, Malaysia, Mexico, Philippines, Poland, Romania, Russia, Saudi Arabia, Singapore, South Africa, Taiwan, Thailand, Turkey and Vietnam.
Global capital expenditures GTM ASIA 14
Global G3 capital goods shipments Credit spreads and U.S. capital spending
Index, rebased to 100 at start of U.S. recession Year-over-year change
120 -150% 20%
Spreads tightening,
115 CAPEX rising
-100% 15%
Global economy
110
-50% 10%
105
0% 5%
100
95 50% 0%
90
100% -5%
85
150% -10%
80
200% -15%
75 Spreads widening,
CAPEX falling
70 250% -20%
-6 0 6 12 18 24 30 36 42 48 54 60 66 72 78 84 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20
Months before/after start of recession
Credit spreads (inverted) Nonresidential fixed
2001 recession Great Financial Crisis recession investment (4Q lag)
COVID-19 recession
Source: FactSet, J.P. Morgan Asset Management; (Left) J.P. Morgan Economic Research; (Right) Bloomberg Finance L.P., U.S. Bureau of Economic Analysis. G3
represents eurozone, Japan and U.S. Spreads based on option-adjusted spread for Bloomberg Barclays U.S. Corporate Investment Grade index.
Global trade GTM ASIA 15
Global trade activity Exports growth

Year-over-year change, 3-month moving average Index, 4-month lead Year-over-year change, 3-month moving average
25% 75 30%
70 25%
20%
Global economy
20%
65
15%
15%
60
10%
10%
55
5% 5%
50
0% 0%
45
-5%
-5%
40
-10%
-10%
35
-15%
-15% 30 -20%
-20% 25 -25%
'01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21
Global trade volume growth New exports orders* Developed markets Emerging markets
Source: FactSet, J.P. Morgan Economics Research, Markit, Netherlands Bureau for Economic Policy Analysis, J.P. Morgan Asset Management.
*Series shown is the Global Manufacturing Purchasing Managers’ Index Sub-Index for new export orders. Emerging markets and developed markets as defined by
Netherlands Bureau for Economic Policy Analysis World Trade Monitor.
Global supply chains GTM ASIA 16
Supply chain issues

Monthly, Dec. 2019 - present
Dissipating supply chain disruption Heightened supply chain disruption

Global economy
Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
'19 '20 '20 '20 '20 '20 '20 '20 '20 '20 '20 '20 '20 '21 '21 '21 '21 '21 '21 '21 '21 '21 '21 '21
Global shipping costs
China Containerized Freight
Port of LA loaded container ratio* - -
Semiconductor lead times -
DM output
DM input prices**
DM supplier delivery time***
EM Asia output
EM Asia input prices**
EM Asia supplier delivery time***
Source: Drewry, FactSet, IHS Markit, J.P. Morgan Economic Research, Port of Los Angeles, Shanghai Shipping Index, Susquehanna Financial Group, J.P. Morgan Asset
Management. Global shipping costs: Drewry World Container Index; The China Containerized Freight Index for January and February 2020 is estimated by extrapolating
between December 2019 and March 2020. The Port of LA loaded container ratio is calculated by dividing the total number of loaded containers by the total number of
empty containers. Semiconductor lead time is the time between ordering a chip and delivery and is only available until 31/10/21. The output, input prices and supplier
delivery time of developed markets and EM Asia are measured using the corresponding manufacturing PMI sub-indices.
*Green signifies more loaded containers relative to empty containers at the Port of LA, which implies less supply chain disruptions.
**Green signifies lower input prices as the impact of input cost pressures has eased.
***Green signifies shorter supplier delivery time.
Global inflation GTM ASIA 17
Headline consumer prices

Year-over-year change, quarterly
Below trend Inflation running Above trend

Legend
Global economy
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 '21 Oct Nov
Developed Markets
U.S. 6.2% 6.9%
UK 4.2% 5.1%
Eurozone 4.1% 4.9%
Japan 0.1% 0.6%
Australia 3.1% 3.1%
China 1.5% 2.3%
India 4.5% 4.9%
Korea -2.1% -1.5%

EM Asia
Taiwan 2.3% 2.6%
Indonesia 1.7% 1.7%
Malaysia 2.9% 3.3%
Thailand 2.4% 2.7%
Brazil 10.7% 10.7%
Mexico 6.2% 7.4%

Other EM
Russia 4.0% 3.8%
Turkey 19.9% 21.3%
South Africa 5.0% 5.5%
Source: Department of Statistics Malaysia, DGBAS, Eurostat, FactSet, Goskomstat of Russia, IBGE, India Ministry of Statistics & Programme Implementation, INEGI, J.P.
Morgan Economics Research, Korean National Statistical Office, Melbourne Institute, Ministry of Commerce Thailand, Ministry of Internal Affairs & Communications Japan,
National Bureau of Statistics China, Office for National Statistics UK, Statistics Indonesia, Statistics Institute Turkey, Statistics South Africa, U.S. Department of Labor, J.P.
Morgan Asset Management. Quarterly averages, with the exception of the two most recent figures, which are single month readings, are shown. Colors are based on z-
score of year-over-year inflation rate relative to each market’s own 10-year history where red (green) indicates inflation above (below) long-run trend. EM represents
emerging markets.
Global central bank policy rate changes GTM ASIA 18
Changes in central bank policy rates

Number of hikes or cuts*
150
Rate hikes
Global economy
100
50
-50
-100
Rate cuts
-150
-200
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
/ Developed markets / Emerging markets
Source: BIS, J.P. Morgan Asset Management.

*Count covers the 38 central banks included in the Bank for International Settlements’ central bank policy monitor except Argentina, Croatia and Hong Kong.
Past performance is not a reliable indicator of current and future results.
G4 central bank policy rates and market expectations GTM ASIA 19
G4 central bank key policy rates Market expectations* for policy rates
Per annum Per annum
7% 2.0%
6%
Global economy
1.5%
5%
1.0%
4%
3% 0.5%
2%
0.0%
1%
-0.5%
0%
-1% -1.0%
'00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 Dec '21 Dec '22 Dec '23 Dec '24 Dec '25
U.S. UK Eurozone Japan U.S. UK Eurozone Japan
Source: J.P. Morgan Asset Management; (Left) FactSet; (Right) Bloomberg L.P.
G4 are the Bank of England, the Bank of Japan (BoJ), the European Central Bank and the U.S. Federal Reserve. *Expectations are derived from the 3-month moving
average of the overnight index swap (OIS) forward rates.
G4 central bank balance sheets GTM ASIA 20
G4 central bank balance sheets*

USD trillions Forecast**
10 28
26
Global economy
24
8 11/2010: U.S. QE2
announced 22
03/2020: U.S.
11/2008: U.S. QE1 09/2012: U.S. QE3 20
QE4 announced
announced announced
6
18
16
4 14
12
10
2
8
6
0
4
-2 0
'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
12-month change in UK Japan
balance sheet
Eurozone U.S.
Source: FactSet, J.P. Morgan Asset Management. *G4 is the eurozone, Japan, UK and the U.S. **Forecasts are based on implied monetary policy settings.
Household savings and consumption GTM ASIA 21
Savings rate U.S. household disposable income breakdown

Share of disposable income Year-over-year change
40% 35%
30%
35%
Global economy
25%
30%
20%
25%
15%
20% 10%
5%
15%
0%
10%
-5%
5%
-10%
0% -15%
'00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20
U.S. UK Eurozone Disposable income Income after tax
Government transfers/Benefits
Source: U.S. Bureau of Economic Analysis, J.P. Morgan Asset Management; (Left) Eurostat, Office of National Statistics UK; (Right) Refinitiv Datastream.
COVID-19 vaccinations and infections GTM ASIA 22
People who have received at least one dose of vaccine Daily increase in cases (region)
% of population 7-day moving average, per million people
100% 1,800
90%
1,600
Global economy
80%
1,400
70%
60% 1,200
50%
1,000
40%
30% 800
20%
600
10%
400
0%
Chile
Mexico
Hong Kong
Brazil
Japan
Singapore***
U.S.
Philippines*
Australia
Indonesia
Turkey
European Union
South Korea
China**
World
Israel
UK
India
Thailand
Vietnam
Malaysia
Argentina
200
0
Mar '20 Jun '20 Sep '20 Dec '20 Mar '21 Jun '21 Sep '21 Dec '21
Current One month ago North America Europe Asia Latin America
Source: J.P. Morgan Asset Management; (Left) Our World in Data; (Right) Johns Hopkins University, World Bank – World Development Indicators. North America includes
U.S. and Canada; Europe includes France, Germany, Italy, Spain and UK; Asia includes Australia, China, Hong Kong, India, Japan, Singapore and South Korea; Latin
America includes Brazil, Chile, Peru and Mexico. Population numbers are based on World Bank data as of 31/12/20. *For Philippines, the purple diamond shows the
vaccination data from 11/11/2021 as that is the closest to one month before latest data. **For China, the purple dot shows the vaccination data from 19/11/21 as that is the
closest to one month before latest data. ***For Singapore, the purple dot shows the vaccination data from 03/12/21 as that is the closest to one month before latest data.
Political calendar GTM ASIA 23
Developed markets 2022 political timeline
27 March Hong Kong

13 February Germany Chief Executive 21 May Australia 8 November U.S.
Presidential election election Federal election Mid-term elections
Global economy
Jan Feb March April May June July August Sept Oct Nov Dec
7-18 November
31 January 9 March 10 April France
COP27 meeting in
Italy South Korea Presidential
Egypt
Presidential Presidential election election
election
Emerging markets 2022 political timeline
5 March China 9 May Philippines

National People’s Presidential Q4 2022 China
Congress election 20th Party Congress
Jan Feb March April May June July August Sept Oct Nov Dec
29 May 2 October Brazil

Colombia General elections
General elections
Source: Bloomberg Finance L.P., J.P. Morgan Asset Management.

United States: Economic growth and the composition of GDP GTM ASIA 24
Real GDP Components of GDP

Year-over-year change 3Q21 nominal GDP, USD trillions
10%
Real GDP 3Q21 24
4.7% Housing
Year-over-year change: 4.9% 22
8% 13.0% Investment ex-housing
Global economy
Quarter-over-quarter SAAR* change: 2.3%

20
6% 18 17.6% Gov’t spending

50-year average: 2.7% 10-year average:
2.1% 16
4%
14
12
2%
10
0% 8
68.8% Consumption
6
-2%
4
2
-4%
0
-2 -4.1% Net exports

-6%
'71 '76 '81 '86 '91 '96 '01 '06 '11 '16 '21
Source: Bureau of Economic Analysis, FactSet, J.P. Morgan Asset Management.

*SAAR stands for seasonally adjusted annualized rate.
United States: Business cycle thermometer GTM ASIA 25
U.S. business cycle indicators

Current percentile rank relative to range of data since Jan. 1990
100
Global economy
Latest
Elevated
75
50
Retrenched
25
3
months
ago
0
Consumer Wage Nonfarm Housing Light Vehicle Business Capex Durable Industrial Leading Credit Example
Confidence Growth Payrolls Starts Sales Confidence Orders Production Economic Conditions
Index
Consumers Businesses
Source: BEA, Conference Board U.S., FactSet, U.S. Census Bureau, U.S. Department of Labor, Wards Intelligence, J.P. Morgan Asset Management.
Indicators are: Consumer Confidence – Monthly survey index of how consumers perceive their own financial status and the general economy; Wage Growth – Average
hourly earnings of production and non-supervisory workers; Nonfarm Payrolls – Monthly change in U.S. nonfarm employment (three-month moving average); Housing
Starts – Number of private housing units that construction has started within a specified timeframe; Light Vehicle Sales – Cars and passenger trucks sold in a given month;
Business Confidence – Monthly survey of Chief Executive Officers about their outlook for the economy; Capex – Monthly new orders of non-defense capital goods
(excluding aircraft); Durable Orders – Monthly new orders of durable goods in the manufacturing sector, seasonally adjusted; Industrial Production – Monthly output of the
industrial sector; Leading Economic Index – An index aggregating values of 10 key variables intended to forecast future U.S. economic activity; Credit Conditions – Leading
Credit Index that aggregates performance of six financial market instruments to track credit conditions in the U.S. economy.
United States: Employment and wages GTM ASIA 26
Unemployment rate and average hourly earnings*

Percent of labor force, year-over-year change, seasonally adjusted
16%
14%
Global economy
Recessions
12%
10%
8%
6% 11/2021: 4.2%
11/2021: 5.9%
4%
2%
0%
'85 '90 '95 '00 '05 '10 '15 '20
Unemployment rate Average hourly earnings First Fed hike after recession**
Source: FactSet, U.S. Bureau of Labor Statistics, J.P. Morgan Asset Management.
*Average hourly earnings are calculated from the wages of production and non-supervisory workers.
**The first Fed hike after the last 3 recessions happened on 13/12/93, 25/12/03 and 20/01/15.
United States: Inflation GTM ASIA 27
Headline and core PCE* inflation Consumer Price Index (CPI) components contribution
Year-over-year change, seasonally adjusted Year-over-year change, seasonally adjusted
6% 7%
5% 6%
Global economy
4% 5%
3% 4%
2% 3%
1% 2%
0% 1%
-1% 0%
-2% -1%
90' 92' 94' 96' 98' 00' 02' 04' 06' 08' 10' 12' 14' 16' 18' 20' Jan '21 Feb '21 Mar '21 Apr '21 May '21 Jun '21 Jul '21 Aug '21 Sep '21 Oct '21 Nov '21
Core PCE inflation Headline PCE inflation Energy Re-opening** Shelter** Autos** Other
Fed’s 2% headline PCE target
Source: Bureau of Economic Analysis, Bureau of Labor Statistics, FactSet, Federal Reserve, J.P. Morgan Asset Management.
*The Federal Reserve (Fed) uses the Personal Consumption Expenditure (PCE) deflator to measure inflation. Core PCE is defined as PCE excluding food and energy
prices. In August 2020, the Fed unveiled its Average Inflation Targeting policy, which seeks to achieve inflation that averages 2% over time.
**Shelter defined as shelter - lodging away from home, Re-opening defined as lodging away from home + transportation services + food away from home, Autos defined as
new vehicles + used cars and trucks.
United States: Infrastructure spending GTM ASIA 28
U.S. infrastructure spending proposals*

% of proposed USD 550 billion spending on infrastructure
Global economy
Environmental Highway and

Cybersecurity & remediation pedestrian EV charging stations,
climate change 4% safety electric buses and
9% 2% ferries
3%
Water
infrastructure Airports, ports
11% Roads and and waterways
bridges 7%
Transportation** 20%
51%
Broadband Public
infrastructure & transit
equipment 7%
12%
Power grid Railroads

13% 12%
Source: FactSet, U.S. Office of Management and Budget, J.P. Morgan Asset Management.
*The figures are based on the U.S. White House’s 2022 budget proposal. These figures are subject to changes from ongoing negotiations. **Transportation includes
proposed spending on roads and bridges; highway and pedestrian safety; EV charging stations, electric buses and ferries; airports, ports and waterways; public transits;
and railroads.
United States: Monetary policy GTM ASIA 29
Federal funds rate expectations

Market expectations for the fed funds rate
7 FOMC December 2021 forecasts
Percent
Long
2021 2022 2023 2024
Global economy
6 run
Change in real GDP, 4Q to 4Q 5.5 4.0 2.2 2.0 1.8
5 Unemployment rate, 4Q 4.3 3.5 3.5 3.5 4.0
PCE inflation, 4Q to 4Q 5.3 2.6 2.3 2.1 2.0
3
2.5%
0 Long
'00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 '24 '26 '28 '30 run
Federal funds rate Market expectations on 31/12/21 FOMC year-end estimates FOMC long-run projection
Source: Bloomberg Finance L.P., FactSet, U.S. Federal Reserve, J.P. Morgan Asset Management.
Market expectations are derived from the semi-annual data of the overnight index swap (OIS) forward rates as of 31/12/21. Federal Reserve projections shown are the
median estimates of Federal Open Market Committee (FOMC) participants.
Eurozone: Economic snapshot GTM ASIA 30
Eurozone activity Consumer confidence* and retail sales

Year-over-year change Year-over-year change, 3-month moving average Index
60% 20% 0
50%
Global economy
15%
40% -5
30% 10%
20% -10
5%
10%
0%
0% -15
-10% -5%
-20% -20
-10%
-30%
-40% -15% -25

'07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Exports Industrial production Retail sales Consumer confidence
Source: Eurostat, FactSet, J.P. Morgan Asset Management; (Right) European Commission.
*Eurozone consumer confidence as reported by the European Commission, which measures the level of optimism that consumers have about the economy in relation to
prior months and is typically below zero.
Global and Asia equity market returns GTM ASIA 31
10-yrs ('12 - '21)

2011 2012 2013 2014 2015 2016 20170 8 2018 2019 2020 2021 4Q '21 Ann. Ret. Ann. Vol.
U.S. India U.S. China A Japan Taiwan China U.S. Taiwan Korea U.S. U.S. U.S. China A
2.1% 26.0% 32.4% 52.1% 9.9% 19.6% 54.3% -4.4% 37.7% 45.2% 28.7% 11.0% 16.6% 23.8%
ASEAN China Japan India China A U.S. Korea India China A Taiwan Taiwan Taiwan Taiwan India
-6.1% 23.1% 27.3% 23.9% 2.4% 12.0% 47.8% -7.3% 37.2% 42.0% 26.8% 8.5% 16.0% 21.4%
Europe ASEAN Europe U.S. U.S. Korea India Taiwan U.S. China A India Europe India China
-10.5% 22.8% 26.0% 13.7% 1.4% 9.2% 38.8% -8.2% 31.5% 38.4% 26.7% 5.7% 10.9% 19.6%
APAC APAC APAC
Korea Taiwan Taiwan Europe ASEAN Europe China Europe China A China A Korea
Equities
ex-JP ex-JP ex-JP

-11.8% 22.6% 9.8% 10.1% -2.3% 7.1% 37.3% -8.4% 24.6% 29.7% 17.0% 3.0% 9.9% 19.3%
APAC
Japan Korea Korea China India ASEAN China A Japan China Japan ASEAN Europe Taiwan
ex-JP
-14.2% 21.5% 4.2% 8.3% -6.1% 6.2% 32.6% -12.6% 23.7% 22.8% 2.0% 1.3% 8.8% 16.4%
APAC APAC
Europe China ASEAN Korea Japan ASEAN Japan U.S. ASEAN India Japan ASEAN
ex-JP ex-JP
-15.4% 19.9% 4.0% 6.4% -6.3% 2.7% 30.1% -13.7% 20.1% 18.4% 0.2% -0.1% 8.7% 15.5%
APAC APAC APAC APAC
China Taiwan China China Taiwan Europe India China A Korea Europe
ex-JP ex-JP ex-JP ex-JP
-18.2% 17.7% 3.7% 3.1% -7.6% 1.1% 28.5% -14.3% 19.5% 15.9% -1.0% -0.7% 8.0% 15.5%
APAC APAC APAC APAC
Taiwan U.S. China A Japan Europe Europe China Korea Japan Korea
ex-JP ex-JP ex-JP ex-JP
-20.2% 16.0% -2.6% -3.7% -9.1% 0.2% 26.2% -18.7% 13.1% 14.9% -2.7% -0.7% 7.5% 15.4%
China A China A India Europe Taiwan India Japan Korea ASEAN Europe Korea Japan China Japan
-20.5% 10.9% -3.8% -5.7% -11.0% -1.4% 24.4% -20.5% 8.8% 5.9% -7.9% -3.9% 7.4% 13.1%
India Japan ASEAN Korea ASEAN China A U.S. China A India ASEAN China China ASEAN U.S.
-37.2% 8.4% -4.5% -10.7% -18.4% -15.2% 21.8% -27.6% 7.6% -6.2% -21.6% -6.1% 2.8% 13.0%
Source: FactSet, MSCI, Standard & Poor’s, J.P. Morgan Asset Management.
Returns are total returns in U.S. dollars based on MSCI indices, except the U.S., which is the S&P 500, and China A, which is the CSI 300 index in U.S. dollar terms. China
return is based on the MSCI China index. 10-yr total (gross) return data is used to calculate annualized returns (Ann. Ret.) and annualized volatility (Ann. Vol.) and reflect
the period 31/12/11 – 31/12/21. Past performance is not a reliable indicator of current and future results.
Global equities: Return composition GTM ASIA 32
Sources of global equity returns*

Total return, USD
40%
2020 2021
28.7%
30%
22.8%
18.7%
18.4%
20% 17.0%
14.9%
Equities
10% 5.9%
2.0%
0%
-2.7% -2.2%
-10%
-20%
-30%
-40%
Asia Pacific EM U.S. Japan Europe Asia Pacific EM U.S. Japan Europe
ex-Japan ex-Japan
Multiple expansion** EPS growth outlook*** Dividend yield Currency return Total return
Source: FactSet, MSCI, Standard & Poor’s, J.P. Morgan Asset Management. *All return values are MSCI Gross Index (official) data, except the U.S., which is the S&P 500.
**Multiple expansion is based on the forward price-to-earnings ratio. ***Earnings per share (EPS) growth outlook is based on next 12-month aggregate (NTMA) earnings
estimates.
Diversification does not guarantee positive returns or eliminate risk of loss. Past performance is not a reliable indicator of current and future results.
Global equities: Earnings expectations GTM ASIA 33
Earnings growth Earnings revisions ratios

Earnings per share, year-over-year change, consensus estimates Net earnings revisions to consensus estimates, 13-week moving average
30% 60%
25% 40%
25%
20%
20%
Equities
18%
0%
15%
13%
-20%
10%
10% 9%
9%
-40%
7% 6%
5% 5%
5% 4%
-60%
1%
0% -80%
U.S. Asia Pacific ex- EM Europe '14 '15 '16 '17 '18 '19 '20 '21
Japan
2012-2019* CAGR 2020-2021* CAGR 2022 U.S. Europe Asia Pacific ex-Japan Japan
Source: IBES, MSCI, Refinitiv Datastream, Standard & Poor’s, J.P. Morgan Asset Management. Asia Pacific ex-Japan, emerging markets (EM), Europe and U.S. equity
indices used are the MSCI Asia Pacific ex-Japan, MSCI Emerging Markets, MSCI Europe and S&P 500, respectively. Consensus estimates used are calendar year
estimates from IBES. Revisions are based on the current unreported year. *Consensus estimates for earnings compound annual growth rate (CAGR) in the Asia Pacific ex-
Japan, EM, Europe and U.S. for 2012-2019 signify pre-pandemic years while 2020-2021 signify pandemic years.
Net earnings revisions is (number of companies with upward earnings revisions – number of companies with downward earnings revisions) / number of total companies.
Global equities: Inflation and profitability GTM ASIA 34
MSCI AC World EPS and global inflation U.S. wage growth** and profit margins
Year-over-year change Year-over-year change Year-over-year change
16% 50% 60% 9%
40% 50% 8%
12%
30% 40% 7%
8% 20%
30% 6%
Equities
10%
4% 20% 5%
0%
10% 4%
0%
-10%
0% 3%
-4% -20%
-10% 2%
-30%
-8%
-20% 1%
-40%
-12% -50% -30% 0%

'99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21 '90 '00 '10 '20
PPI inflation* Earnings per share Profit margins Wage growth**
Source: FactSet, J.P. Morgan Asset Management; (Left) Federal Reserve Bank of Dallas, MSCI; (Right) U.S. Bureau of Economic Analysis, U.S. Department of Labor.
*PPI is producer price index, world excluding U.S. **Wage growth is the year-over-year change in the average hourly earnings of production and non-supervisory workers.
Global equities: Valuations GTM ASIA 35
Equity market valuations – Price-to-earnings 15-yr. range

Forward P/E ratios 15-yr. average
41.1 38.3 35.8 Latest
30x
23.1
20x 21.1
18.8
16.5 16.6 17.2 15.7 17.9
15.1 15.0 14.5 15.7 15.3
14.4 12.4 14.1
12.6 10.7
10x
7.7
5.5
Equities
0x
S&P 500 Europe Asia Pac Emerging ASEAN China A China Hong India Indonesia Japan Korea Malaysia Philippines Singapore Taiwan Thailand Brazil Mexico Russia
ex-UK ex-Japan markets (CSI 300) Kong
Equity market valuations – Price-to-book

Trailing P/B ratios
7.2 5.2 5.2 15-yr. range
5x 4.9 15-yr. average
Latest
4x
3.9
3x
2.7
2.4
2.2 2.3
2x 2.2 2.1
1.9 1.8 2.0 1.7 1.9
1.7
1.4 1.6 1.4
1.2 1.3
1x 1.0
0x
S&P 500 Europe Asia Pac Emerging ASEAN China A China Hong India Indonesia Japan Korea Malaysia Philippines Singapore Taiwan Thailand Brazil Mexico Russia
ex-UK ex-Japan markets (CSI 300) Kong
Source: Bloomberg Finance L.P., China Securities Index, FactSet, MSCI, Standard & Poor’s, J.P. Morgan Asset Management.
Emerging markets is represented by the MSCI Emerging Markets Index. Price-to-earnings (P/E) and price-to-book (P/B) ratios are in local currency terms. 15-year range for
P/E and P/B ratios are cut off to maintain a more reasonable scale for some indices. Past performance is not a reliable indicator of current and future results.
Global equities: Growth versus value GTM ASIA 36
Growth vs. value valuations* MSCI World Index sector earnings correlation to real GDP
MSCI World growth / value fwd. P/E ratio, # of std. dev. over / under average 1Q2009 – 3Q2021
4
Real Estate** 0.8
3 Industrials 0.7
Growth expensive
relative to value
Cons. Disc. 0.6
2
Financials 0.2
Equities
Cons. Staples 0.2

1
Materials 0.2
0
Info. Tech. 0.1
Utilities 0.0
-1
Health Care 0.0
-2 Comm. Svcs 0.0

Growth cheap
relative to value
Energy 0.0
-3
'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 -0.1 0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
Growth Value
Source: FactSet, MSCI, J.P. Morgan Asset Management.

*Growth is the MSCI World Growth index and value is the MSCI World Value index.
**Real estate correlation is since 30/09/17. Each sector is categorized as value or growth based upon their weights in the MSCI World growth and value indices.
APAC ex-Japan equities: Earnings expectations by market and sector GTM ASIA 37
Earnings growth by market

Earnings per share, year-over-year change, consensus estimates
140%
118%
120%
100%
80% 69%
64% 62% 55%
60% 51%
42%
35% 33%
40% 24%
16% 13% 18% 16% 16% 19%
20% 7% 10%
2%
0%
-5% -2% -2%
-20%
Equities
Korea Taiwan Malaysia Australia Asia Pacific ex- Thailand China Hong Kong Singapore Indonesia India
Japan
2021 2022
Earnings growth by sector

Earnings per share, year-over-year change, consensus estimates
140% 127%
120%
97%
100% 86%
80%
60% 41%
37% 36%
40% 22%
9% 8% 9% 9% 10% 10% 10% 13%
20% 5%
0%
-20% -3% -8% -1%
-8%
-40% -19% -18%
Communication Materials Health care Financials Industrials Energy Information Real estate Consumer Utilities Consumer
services technology staples discretionary
2021 2022
Source: MSCI, J.P. Morgan Asset Management. (Top) IBES. Equity indices used are the respective MSCI indices. Consensus estimates used are calendar year estimates
from IBES. (Bottom) FactSet. Sector indices used are from the MSCI AC Asia Pacific ex-Japan Index. Consensus estimates used are calendar year estimates from
FactSet. Past performance is not a reliable indicator of current and future results.
APAC ex-Japan equities: Performance drivers GTM ASIA 38
APAC ex-JP price-to-book and subsequent returns APAC ex-JP / DM equity performance and USD index
Next 12 months’ price return in USD Relative index level, Dec. 1997 = 100 Index level
120% 250 40
Current level
80% 200 60
Equities
40% 150 80
0% 100 100
-40% 50 120
-80% 0 140
0.8 1.2 1.6 2.0 2.4 2.8 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22
MSCI APAC ex-JP / MSCI World (DM) USD Index (inverted)
Source: FactSet, MSCI, J.P. Morgan Asset Management; (Left) J.P. Morgan Economic Research.
Dots represent monthly data points since 1996. DM = Developed markets. Past performance is not a reliable indicator of current and future results.
APAC ex-Japan equities: Dividends GTM ASIA 39
APAC ex-JP earnings and dividends growth estimates Number of companies yielding greater than 3% by region
Year-over-year change Constituents of MSCI AC World Index
70% 300
60%
249
50% 250
40%
30% 200
Equities
20%
10% 150
122
0%
104
-10% 100
80
74
-20%
-30% 50
-40%
-50% 0
'03 '05 '07 '09 '11 '13 '15 '17 '19 '21 Asia Pac. ex- Europe EM ex-Asia U.S. Japan
MSCI APAC ex-JP earnings per share Japan
MSCI APAC ex-JP dividends per share
Source: FactSet, MSCI, J.P. Morgan Asset Management. Past performance is not a reliable indicator of current and future results.
APAC ex-Japan equities: Exports and earnings GTM ASIA 40
APAC ex-JP vs. DM growth and equity performance Growth in nominal exports and earnings per share
Next 12 months’ growth estimates Index level USD, year-over-year change
20% 120 80%
APAC ex-JP growth &
equity outperformance 110
60%
15% 100
90 40%
Equities
10% 80
20%
70
0%
5% 60
50
-20%
0% 40
-40%
APAC ex-JP growth & equity 30
underperformance
-5% 20 -60%
'96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21
Emerging Asia minus DM MSCI APAC ex-JP / MSCI APAC ex-JP earnings per share
GDP growth MSCI World (DM)
EM Asia ex-China exports*
Source: FactSet, MSCI, J.P. Morgan Asset Management; (Left) J.P. Morgan Economic Research; (Right) CEIC, national statistics agencies.
DM = Developed markets.
*EM Asia ex-China includes Hong Kong, Korea, Malaysia, Singapore, Taiwan, Thailand and Vietnam. Overall exports aggregate is gross domestic product (GDP)-
weighted. Past performance is not a reliable indicator of current and future results.
APAC ex-Japan equities: Earnings trend by revenue source GTM ASIA 41
Domestic vs. exports-oriented Asian companies*

MSCI AC Asia Pacific ex-Japan, earnings per share, Jan. 2010 = 100
400
350
300
Equities
250
200
150
100
50
0
'10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
More than 95% of revenue derived domestically Between 70% and 95% of revenue derived domestically Less than 70% of revenue derived domestically

Earnings per share (EPS) used is next 12 months’ aggregate estimate. *Universe of stocks within the MSCI AC Asia Pacific ex-Japan index are split into three buckets
depending on their revenue exposure to their domestic market. Over the time period examined (01/01/10 – 30/11/21), monthly adjustments are made to the buckets to
reflect changes in a company's operations over time. Subsequently, EPS for each bucket is calculated by summing the market-value weighted EPS for each company on a
monthly basis over the examined period. Each EPS series is then indexed to 100 on 01/01/10.
China: Sector earnings and valuations GTM ASIA 42
Earnings growth of MSCI China* MSCI China price-to-earnings

Earnings per share, year-over-year change, consensus estimates Forward P/E ratios
120% 70x
100% 15-yr. range

60x 15-yr. average
Latest
80%
50x
60%
Equities
40% 40x
20%
30x
0%
-20% 20x
-40%
10x
Comm. Services
MSCI China
Cons. Discr.
Materials
Tech.
Real Estate
Energy
Financials
Utilities
Industrials
Cons. Staples
Health Care
0x
MSCI China
Cons. Discr.
Materials
Tech.
Real Estate**
Financials
Energy
Utilities
Services
Industrials
Health Care**
Cons. Staples
Comm.
Sector
Weight 1.7 18.3 5.7 4.0 14.4 100.0 3.5 7.1 2.8 6.0 7.1 29.5
(%)
2021 2022
Source: FactSet, MSCI, J.P. Morgan Asset Management. *Sector indices used are from the MSCI China Index. Consensus estimates used are calendar year estimates
from FactSet. Past performance is not a reliable indicator of current and future results. **Data for the forward price-to-earnings ratio in the real estate and health care
sectors begin from 30/09/16 and 30/06/09, respectively.
China: Regulations GTM ASIA 43
Property Education Internet

Three red-line rules were introduced to Policy aimed at reducing burdens of Enhance data security: Didi was banned
restrict interest-bearing borrowing for students and families is issued: New from app stores due to violation of
developers that breached 3 debt criteria: rules to regulate after-school tutoring personal data collection and usage (July
(1) total liabilities/asset ratio >70%; (2) industry include 1) these companies can 2021); Data Security Law came into
net gearing >100%; and (3) cash to only be registered as non-profit effect on September 1, 2021; Personal
short-term debt ratio (August 2020) organizations; 2) approvals for new Information Protection Law became
companies were banned; and 3) illegal effective on November 1, 2021
Central government issued guidance of for these companies to receive foreign
real estate monitoring, targeting investment/ raise capital/ go public. Antitrust: Alibaba received RMB
developers, housing transactions, For core school subjects, tutoring 18.2billion fine on monopolistic practices
rentals and property management; courses cannot be offered during (April 2021); Internet giants such as
Local governments tighten purchase weekends, public holidays as well as Alibaba and Tencent were fined in 22
Equities
restrictions measures (July 2021) school breaks (July 2021) antitrust cases (July 2021); SAMR
announced fine on Meituan of RMB
National People’s Congress authorized 3.4billion (October 2021)
the State Council to pilot property tax in
selected cities (October 2021) Energy Social security and labor rights matters:
New instructions on food delivery
PBoC vowed to take measures to Local governments restricted production platforms’ responsibility to protect
“safeguard the legitimate rights and of energy-intensive industries (steel, delivery riders’ interests were released
interests of home buyers, better meet cement, glass, coal and aluminum, etc.) (July 2021); More than 10 tier-1 online
their reasonable demands, and promote to meet the de-carbonization goals platforms were summoned to address
healthy development of the real estate social security and labor rights matters
market” (December 2021) State Council announced measures (September 2021)
which includes ramping up coal capacity,
raising tariffs so as to tackle power
Healthcare shortages (October 2021)
Gaming: Online gaming companies will
be banned from offering minors (those
Government expanded the scope of
under age 18) access to games during
centralized pharmaceutical procurement After the power shortage in 3Q21, the weekdays (August 2021)
in order to cap the cost of public health government tuned down the pace of coal
care (October 2021) reduction by stressing that “coal is still
the key power source in China”
(December 2021)
Source: Various news sources, J.P. Morgan Asset Management.

PBoC: People’s Bank of China; SAMR: State Administration for Market Regulation oversees all manner of market controls, including regulating anti-competition behavior,
intellectual property rights, drug safety supervision and issuance of business licenses, etc. The companies/securities above are shown for illustrative purposes only. Their
inclusion should not be interpreted as a recommendation to buy or sell.
China: U.S. listings GTM ASIA 44
Chinese stocks listed on U.S. exchanges Chinese stock performance by listing

2006-2021 Index level, monthly
$2,500 300 800
281
249 700
250
$2,000
212 600
200
177
Equities
500
$1,500
137 150 400
111
$1,000
101 300
93
100
81
75 77
70
59 200
53
$500
41
33 50
100
$0 0 0
'06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '07 '09 '11 '13 '15 '17 '19 '21
Aggregate market cap
(USD billions)
Number of Chinese ADRs* S&P/BNY Mellon China Select ADR Index
CSI 300 Index
Source: Bloomberg, Wind, J.P. Morgan Asset Management.

*Chinese ADRs: American depository receipts that represent shares of U.S.-listed Chinese companies.
Europe: Sector earnings and valuations GTM ASIA 45
MSCI Europe earnings growth estimates MSCI Europe price-to-earnings

120% 35x
15-yr. range
100% 15-yr. average
30x
Latest
80%
25x
60%
40%
Equities
20x
20%
15x
0%
10x
-20%
-40% 5x
Comm. Services
Utilities
Cons. Discr.*
MSCI Europe
Energy*
Industrials
Cons. Staples
Tech.
Materials
Health Care
Financials
Real Estate
0x
Comm. Services
Cons. Discr.
Utilities
MSCI Europe
Real Estate**
Industrials
Cons. Staples
Energy
Materials
Health Care
Tech.
Financials
Sector
Weight 3.5 7.9 15.8 100.0 4.2 14.7 12.8 8.5 1.2 11.4 4.6 15.4
(%)
2021 2022
Source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management. *Consumer discretionary sector earnings are expected to increase by 203% and energy sector
earnings are expected to increase by 1,221% in 2021. **Data for the forward price-to-earnings ratio in the real estate sector begins 30/09/16.
United States: Sector earnings and valuations GTM ASIA 46
S&P 500 earnings growth estimates S&P 500 price-to-earnings

120% 60x
15-yr. range
100% 15-yr. average
50x Latest
80%
40x
60%
Equities
40% 30x
20%
20x
0%
10x
-20%
Comm. Services
S&P 500
Cons. Discr.
Utilities
Energy*
Industrials
Cons. Staples
Tech.
Materials
Health Care
Financials
Real Estate
0x
Comm. Services
S&P 500
Cons. Discr.
Utilities
Industrials
Cons. Staples
Health Care
Tech.
Energy**
Materials
Financials
Real Estate
Sector
Weight 10.7 2.5 2.6 5.9 13.3 2.8 10.2 100.0 29.2 2.7 12.5 7.8
(%)
2021 2022
Source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management. *Energy sector earnings are expected to increase by 1,531% in 2021. **The energy sector reached
a historic maximum of 1,160x and a historic minimum of -491x.
United States: Sources of earnings per share growth GTM ASIA 47
S&P 500 year-over-year operating EPS growth

Annual growth broken into revenue, changes in profit margin & changes in share count
100%
Share of EPS growth 2021* Avg. '01-20
Margin 55.3% 2.8%
Revenue 16.6% 3.0%
80%
Share Count -0.6% 0.3% 71%
Total EPS 71.2% 6.0%
60%
47%
Equities
40%
24% 22%
19% 19% 17%
20% 15% 15% 15%
13%
11%
5% 6%
4%
0%
0%
-6%
-11%
-20%
-22%
-31%
-40%
-40%
-60%
'01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21*
Source: Compustat, FactSet, Standard & Poor’s, J.P. Morgan Asset Management.
EPS levels are based on annual operating earnings per share. Percentages may not sum due to rounding. Past performance is not indicative of future returns.
*2021 earnings estimates are based on forecasts from FactSet Market Aggregates.
United States: Bull and bear markets GTM ASIA 48
S&P 500 bull market gains

Duration:
600% 21 months
Price return:
500%
113%
400% 149 months 132 months
582% 401%
300% 44 months 32 months 61 months 60 months
80% 74% 229% 101%
200% 50 months 26 months 74 months
86% 48% 126%
100%
Equities
0%
'58 '60 '62 '64 '66 '68 '70 '72 '74 '76 '78 '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20
S&P 500 bear market losses
0%
-10%
-20%
8 months
-22% 21 months
-30%
6 months -27%
-28% 18 months 3 months Duration:
-40% -34%
-36% 1 month
17 months Price return:
-50% 21 months 31 months -34%
-57%
-48% -49%
-60%
'58 '60 '62 '64 '66 '68 '70 '72 '74 '76 '78 '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20
Source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management.

A bear market represents a 20% or more decline from the previous market high; a bull market represents a 20% increase from a market trough. Charts and labels refer to
price return. Past performance is not a reliable indicator of current and future results.
United States: Interest rates and equities GTM ASIA 49
Correlations between weekly stock returns and interest rate movements

Weekly S&P 500 returns, 10-year Treasury yield, rolling 1-year correlation, January 1997 – December 2021
1.0
0.8 Positive
relationship
between yield
movements
0.6 and stock returns
0.4
Equities
0.2
Correlation
0.0
-0.2
Negative
relationship
-0.4 between yield
movements and
stock returns
-0.6
-0.8
0% 1% 2% 3% 4% 5% 6% 7% 8%
10-year Treasury yield
2020 onwards 2009-2019 2003-2008 1997-2002
Source: FactSet, Federal Reserve System, Standard & Poor’s, J.P. Morgan Asset Management.
Returns are based on price index only and do not include dividends. Markers represent monthly 1-year correlations only. Periods based on different Federal Reserve
interest rate cycles. Past performance is not a reliable indicator of current and future results.
United States: Interest rates and equity performance GTM ASIA 50
Correlations of S&P 500 relative sector performance to U.S. 10-year Treasury yield
Correlation over last 10 years*
Financials
Energy
Sectors tending to
Industrials outperform index
with rising yields
Materials
Equities
Tech.
Cons. Discr.
Comm. Services
Sectors tending to
Health Care
underperform index
with rising yields
Cons. Staples
Real Estate
Utilities
-0.6 -0.4 -0.2 0 0.2 0.4 0.6
Source: FactSet, Standard & Poor’s, U.S. Federal Reserve, J.P. Morgan Asset Management.
*Data for the correlation in the real estate sector begins 09/09/16.
Returns are based on price index only and do not include dividends. Past performance is not a reliable indicator of current and future results.
Global fixed income returns GTM ASIA 51
10-yrs ('12 - '21)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 4Q '21 Ann. Ret. Ann. Vol.
U.S.
Europe HY Europe HY USD Asian Asia HY U.S. HY Europe HY Cash U.S. IG Europe HY U.S. HY U.S. HY U.S. HY Local EMD
Treas
9.8% 30.5% 14.9% 8.3% 5.2% 17.1% 21.0% 1.8% 14.5% 10.9% 5.3% 0.7% 6.8% 12.3%
USD U.S. USD
Asia HY U.S. HY U.S. IG USD Asian Local EMD Local EMD U.S. IG Cash U.S. IG Europe HY Europe HY
EMD Treas EMD
8.5% 20.4% 7.4% 7.5% 2.8% 11.4% 15.4% 0.9% 14.4% 9.9% 0.0% 0.2% 5.9% 11.0%
USD USD U.S. USD
U.S. IG Local EMD Asia HY Asia HY Asia HY DM Gov't U.S. HY DM Gov't U.S. IG Asia HY
EMD EMD Treas EMD
8.1% 19.9% 2.0% 6.1% 1.2% 11.2% 9.3% -0.7% 14.3% 9.7% -1.0% 0.2% 5.2% 7.7%
USD USD U.S. USD U.S. USD USD USD
DM Gov't Cash U.S. HY USD Asian Local EMD Asia HY
EMD EMD Treas EMD Treas EMD EMD EMD
7.2% 18.5% 0.0% 5.5% 0.8% 10.2% 7.5% -0.8% 13.1% 8.0% -1.5% 0.0% 5.0% 6.9%
U.S. U.S.
U.S. HY U.S. HY USD Asian Cash U.S. IG Asia HY U.S. HY Asia HY U.S. HY Cash USD Asian U.S. HY
Treas Treas
Fixed income
5.0% 15.8% -1.4% 5.1% 0.0% 6.1% 6.9% -2.1% 12.8% 7.1% -2.3% 0.0% 4.9% 6.5%
USD Asian USD Asian U.S. IG U.S. HY U.S. IG USD Asian DM Gov't U.S. IG USD Asian USD Asian USD Asian Local EMD U.S. IG U.S. IG
4.1% 14.3% -1.5% 2.5% -0.7% 5.8% 6.8% -2.5% 11.3% 6.3% -2.4% -0.7% 4.7% 5.1%
U.S. USD U.S.
Asia HY U.S. IG DM Gov't DM Gov't Europe HY U.S. IG Asia HY Europe HY Local EMD DM Gov't DM Gov't
Treas EMD Treas
2.8% 9.8% -2.7% 0.7% -2.6% 3.4% 6.4% -3.2% 10.3% 5.9% -2.6% -0.9% 2.1% 4.8%
U.S. USD U.S.
Cash DM Gov't Cash U.S. HY DM Gov't USD Asian Asia HY Europe HY USD Asian Local EMD USD Asian
Treas EMD Treas
0.1% 2.0% -4.5% 0.0% -4.5% 1.6% 5.8% -4.6% 6.9% 4.9% -3.1% -1.4% 1.3% 4.1%
U.S. U.S. U.S.
Europe HY DM Gov't Local EMD Europe HY Europe HY Local EMD DM Gov't Cash DM Gov't Europe HY DM Gov't
Treas Treas Treas
-5.5% 1.3% -5.5% -6.0% -7.6% 1.0% 2.3% -6.7% 6.0% 0.5% -6.5% -1.9% 1.1% 3.6%
USD
Local EMD Cash Local EMD Local EMD Cash Cash Europe HY Cash Local EMD Asia HY Asia HY Cash Cash
EMD
-6.4% 0.1% -6.6% -6.1% -18.0% 0.3% 0.8% -8.2% 2.2% -1.2% -11.0% -6.8% 0.6% 0.2%
Source: Barclays, Bloomberg Finance L.P., FactSet, J.P. Morgan Economic Research, J.P. Morgan Asset Management. Based on Bloomberg Barclays U.S. Aggregate
Credit – Corporate High Yield Index (U.S. HY), Bloomberg Barclays U.S. Aggregate Credit – Corporate Investment Grade Index (U.S. IG), J.P. Morgan Government Bond
Index – EM Global (GBI-EM) (Local EMD), J.P. Morgan Emerging Market Bond Index Global (EMBIG) (USD EMD), J.P. Morgan Asia Credit Index (JACI) (USD Asian
Bond), Bloomberg Barclays Pan European High Yield (Europe HY), J.P. Morgan Government Bond Index – Global Traded (DM Government Bond), J.P. Morgan Asia
Credit High Yield Index (Asia HY), Bloomberg Barclays Global U.S. Treasury – Bills (3-5 years) (U.S. Treasury) and Bloomberg Barclays U.S. Treasury – Bills (1-3 months)
(Cash). 10-year data is used to calculate annualized returns (Ann. Ret.) and annualized volatility (Ann. Vol.). Returns are in U.S. dollars and reflect the period from
31/12/11 – 31/12/21. Past performance is not a reliable indicator of current and future results.
Global fixed income: Yields and duration GTM ASIA 52
Fixed income yields

Yield to maturity
10%
Developed market Investment-grade bonds High yield bonds Asia & Emerging market bonds
government bonds
8%
6%
4%
Fixed income
2%
0%
Duration (years)
5.2 2.3 7.4 8.7 6.1 3.3 3.8 3.9 5.2 5.9 5.1 4.9 8.2
-2%
Germany Japan U.S. Europe U.S. Global U.S. Asia Europe U.S. Global Asia USD Local USD USD
10y 10y 10y IG ABS IG IG IG HY HY HY HY Asia EMD China EMD
Credit Offshore
Source: Barclays, Bloomberg Finance L.P., FactSet, ICE BofA Merrill Lynch, J.P. Morgan Economic Research, J.P. Morgan Asset Management. Based on Bloomberg Credit
Barclays U.S. Aggregate Credit – Corporate Investment Grade Index (U.S. IG), Bloomberg Barclays Euro Aggregate Credit – Corporate (Europe IG), J.P. Morgan Asia
Credit Investment Grade Index (Asia IG), Bloomberg Barclays Global Aggregate – Corporate (Global IG), Bloomberg Barclays U.S. Aggregate Credit – Corporate High
Yield Index (U.S. HY), Bloomberg Barclays U.S. Aggregate Securitized – Asset Backed Securities (U.S. ABS), Bloomberg Barclays Pan European High Yield (Europe HY),
J.P. Morgan Asia Credit High Yield Index (Asia HY), ICE BofA Global High Yield (Global HY), J.P. Morgan GBI-EM (Local EMD), J.P. Morgan EMBI Global (USD EMD),
J.P. Morgan Asia Credit Index (JACI) (USD Asia Credit), J.P. Morgan Asia Credit China Index (USD China Offshore Credit). Duration is a measure of the sensitivity of the
price (the value of the principal) of a fixed income investment to a change in interest rates and is expressed as number of years. Rising interest rates mean falling bond
prices, while declining interest rates mean rising bond prices. Yields are not guaranteed, positive yield does not imply positive return. Past performance is not a reliable
indicator of current and future results.
Global fixed income: Return composition GTM ASIA 53
Debt return composition

Last 6 months
6%
3%
0%
-3%
-6%
Fixed income
-9%
-12%
-15%
-18%
U.S. high yield USD DM USD EMD USD EMD Local DM USD Asia USD China Local EMD USD Asia
high yield corporates sovereigns corporates offshore credit high yield
Price return Income return Currency return Total return

Source: J.P. Morgan Economics Research, J.P. Morgan Asset Management.
Based on J.P. Morgan Asia Credit High Yield Index (USD Asia high yield), J.P. Morgan CEMBI (USD emerging market debt (EMD) corporates), J.P. Morgan EMBI Global
(USD EMD), J.P. Morgan Asia Credit Corporates Index (USD Asia corporates), J.P. Morgan Asia Credit China Index (USD China offshore credit), J.P. Morgan Developed
Market HY Index (USD DM high yield), J.P. Morgan Domestic High Yield Index (U.S. high yield), J.P. Morgan GBI-EM Global (Local EMD), J.P. Morgan GBI-DM (Local DM
sovereigns). Past performance is not a reliable indicator of current and future results.
Global fixed income: Valuations GTM ASIA 54
Spread to worst across fixed income sub-sectors

Basis points, last 10 years
1,400
10-yr. range
2020 maximum
1,200 Latest
10-yr. average
1139
1130 2020 minimum
1045
1,000
800 821
Fixed income
662
600 606
529 561
515
477 478 458
409 432 437 446
400 387
375 378
357 350
349 327 321
232 286
284 275 256
211 221 221
200 158 193
179
125 98
118 67
61
0
U.S. high U.S. Euro high Euro USD USD China USD Asia USD EMD USD EMD Local EMD
yield investment yield investment Asia offshore credit high yield corporates
grade grade credit
Source: iBoxx, ICE BofA Merrill Lynch, J.P. Morgan Economics Research, J.P. Morgan Asset Management.
Based on J.P. Morgan Domestic High Yield Index (U.S. high yield), J.P. Morgan U.S. Liquid Index (JULI) (U.S. investment grade), J.P. Morgan Euro High Yield Index (Euro
high yield), iBoxx EUR corporates (Euro investment grade), J.P. Morgan Asia Credit Index (JACI) (USD Asia credit), J.P. Morgan Asia Credit China Index (USD China
offshore credit), J.P. Morgan Asia Credit High Yield Index (USD Asia high yield), J.P. Morgan EMBI Global (USD EMD), J.P. Morgan Corporate Emerging Markets Bond
Index – CEMBI (USD EMD corporates), J.P. Morgan GBI-EM Global (Local EMD). Positive yield does not imply positive return. Past performance is not a reliable indicator
of current and future results.
Global fixed income: Government bond yields and expected inflation GTM ASIA 55
10-year government bond yields Market-based inflation expectations

5-year 5-year inflation swap rate
16% 4%
14% Average
Latest
since 1970*
U.S. 6.1% 1.5% 3%
12% Germany 5.2% -0.2%
Japan 2.2% 0.1%
10% 2%
8%
1%
Fixed income
6%
4% 0%
2%
-1%
0%
-2% -2%
'70 '75 '80 '85 '90 '95 '00 '05 '10 '15 '20 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
U.S. Japan Germany
Source: J.P. Morgan Asset Management; (Left) FactSet, Tullett Prebon; (Right) Bloomberg Finance L.P.
*Data begins, and averages calculated from, 01/01/70 for U.S. Treasuries, 02/10/72 for German Bunds and 03/02/86 for Japanese Government Bonds.
Past performance is not a reliable indicator of current and future results. Positive yield does not imply positive return.
Global fixed income: Yields and risks GTM ASIA 56
Yields and correlations of fixed income returns to equities

Yield, 10-year correlation between monthly total returns
9%
USD Asia HY
Higher yields
8%
7%
Yield to maturity (12-month average)
6%
Local EMD
USD EMD U.S. HY
5% USD Asia Credit
4% USD EMD corporates

Fixed income
Local Asia USD China offshore

credit
3% Europe HY
U.S. IG
U.S. MBS
2% 10y UST U.S. Aggregate
TIPS
1% UK (1-10y) U.S. Floating Rate
2y UST
France (1-10y)
0%
Germany (1-10y) Stronger correlation
Japan (1-10y) to equities
-1%
-0.5 -0.4 -0.3 -0.2 -0.1 0.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9
Correlation to MSCI AC World*
Government Credit Emerging Market Government & Credit
Source: Barclays, Bloomberg Finance L.P., FactSet, ICE BofA Merrill Lynch, J.P. Morgan Economics Research, MSCI, J.P. Morgan Asset Management.
Based on Bloomberg Barclays U.S. Treasury (UST) Bellwether 2y & 10y (2y & 10y UST), Bloomberg Barclays Treasury Inflation-Protected Securities (TIPS), ICE BofAML Country Government (1-
10y) (France, Germany, Japan & UK (1-10y)), Bloomberg Barclays U.S. Aggregate, Credit – Investment Grade & High Yield (U.S. Aggregate, IG & HY), Bloomberg Barclays U.S. Floating Rate
(U.S. Floating Rate), Bloomberg Barclays U.S. Aggregate Securitized – Mortgage-Backed Securities (U.S. MBS), Bloomberg Barclays Pan-European High Yield (Europe HY), J.P. Morgan GBI-EM
Global (Local EMD), J.P. Morgan EMBI Global (USD EMD), J.P. Morgan Asia Credit (JACI) (USD Asia Credit), J.P. Morgan Asia Credit (JACI) – High Yield (USD Asia HY), J.P. Morgan Asia Credit
China Index (USD China offshore credit), J.P. Morgan CEMBI (USD EMD corporates), J.P. Morgan Asia Diversified (JADE) (Local Asia). *Correlations are based on 10-years of monthly returns.
U.S. Treasury yield breakdown and curve spread GTM ASIA 57
U.S. 10-year Treasury yield U.S. Treasury yield curve spread: Term spread
Basis points, 10-year yield – 2-year yield
4% 300
250
3%
200
2%
150
1% 100
Fixed income
50
0%
-1%
-50
-2% -100
'12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20
10-year nominal yield 10-year real yield
10-year inflation breakeven
Source: J.P. Morgan Asset Management; (Left) Bloomberg Finance L.P.; (Right) FactSet, U.S. Federal Reserve.
Positive yield does not imply positive return.
U.S. real yields GTM ASIA 58
Real 10-year and 2-year U.S. Treasury yields
6%
5%
4%
3%
2%
1%
Fixed income
0%
-1%
-2%
-3%
Recessions
-4%
-5%
'90 '95 '00 '05 '10 '15 '20
10-year Treasury 2-year Treasury
Source: FactSet, Federal Reserve, J.P. Morgan Asset Management.

Real 10-year and 2-year Treasury yields are calculated as the daily Treasury yields less year-over-year core consumer price index inflation for that month except for
December 2021, where real yields are calculated by subtracting November 2021 year-over-year core inflation. Yield is not guaranteed. Positive yield does not imply
positive return. Past performance is not a reliable indicator of current and future results.
U.S. investment grade bonds GTM ASIA 59
Corporate bond spread Credit quality and duration

Basis points, option-adjusted spread over U.S. Treasury* Years, duration BBB index share
700 9 60%
Average Latest
Investment grade 132bps 92bps
600
50%
8
500
Recessions 40%
400
7
Fixed income
300
30%
200
6
20%
100
0 5 10%
'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '89 '91 '93 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21
Duration Share of BBB rating bonds in index
Source: Bloomberg Barclays, FactSet, J.P. Morgan Asset Management. *Investment grade is Bloomberg Barclays U.S. Aggregate Credit – Corporate Investment Grade
Index.
U.S. securitized assets GTM ASIA 60
Spreads Consumer sector delinquency*

Basis points, option-adjusted spreads
350 20%
Total debt
balance (USD
18% trillion)**
300 Credit Card 0.80
16% Auto 1.44
Student 1.58
250 14% Mortgage 10.67
Total 15.24
12%
200
10%
Fixed income
150
8%
100 6%
4%
50
2%
0 0%
'12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '04 '06 '08 '10 '12 '14 '16 '18 '20
MBS CMBS ABS
Source: Barclays, Bloomberg Finance L.P., FactSet, J.P. Morgan Asset Management; (Right) U.S. Federal Reserve.
*Delinquency rate is defined as loans at least 90 days late or more with payments.
**Sectors not shown but included in the total figure are Revolving Home Equity and Others. Latest data are as of 3Q21.
MBS are mortgage-backed securities, CMBS are commercial mortgage-backed securities, ABS are asset-backed securities.
U.S. high yield bonds GTM ASIA 61
High yield spread and default rate*
20% 2,000
10-yr
Latest
average
Recessions HY spread to
516bps 375bps
16% worst 1,600
HY energy spread
667bps 434bps
to worst
HY default rate 2.3% 0.3%
HY ex-energy
2.8%** 0.2%
12% default rate 1,200
Fixed income
8% 800
4% 400
0% 0
'90 '95 '00 '05 '10 '15 '20
Default rate Spread to worst (basis points)

*Default rate is defined as the percentage of the total market trading at or below 50% of par value and includes any Chapter 11 filing, pre-packaged filing or missed interest
payments. Spreads indicated are benchmark yield-to-worst less comparable maturity Treasury yields. **Data reflects 20-year average and is as of 31/12/20. U.S. corporate
high yield is represented by the J.P. Morgan Domestic High Yield Index.
Emerging market debt GTM ASIA 62
Spread between local rates and U.S. Treasuries EM debt spreads to U.S. Treasuries and future returns
3-5 year local currency government bond index*, basis points 12-month forward total return, spread in basis points**
50%
1,000
-200
200
400
600
800
S&P Moody's
0
Thailand A- Baa1 40%
Current
China A+ A1 spread range:
30% 340-350 bps
Malaysia A A3
Poland A A2 20%
Indonesia BBB Baa2

10%
Fixed income
S. Africa BB Ba2
India BBB- Baa3 0%
Mexico BBB+ Baa1

-10%
Colombia BBB- Baa2
Russia BBB Baa3 -20%
Brazil BB- Ba2

-30%
5-year average Current 100 200 300 400 500 600 700 800 900
Source: Barclays, Bloomberg Finance L.P., J.P. Morgan Asset Management; (Left) J.P. Morgan Economics Research.
*J.P. Morgan GBI-EM Broad Diversified Index sub-component used for each country. Spread is the difference between the yield on each country’s local 3-5 year
government bond, except for South Africa, which uses 1-5 year, and the yield on the Bloomberg Barclays U.S. Aggregate Government - Treasury (3-5 Year). S&P and
Moody’s are respective country’s local currency long-term debt ratings. **EM debt is represented by the J.P. Morgan Emerging Market Equal Weight Blended Index, which
is an equal-weighted composite index of the J.P. Morgan GBI-EM Global Diversified, J.P. Morgan EMBI Global Diversified and J.P. Morgan CEMBI Broad Diversified
indices. Spreads are the difference between the yield on EM debt securities and an equivalent maturity U.S. Treasury bond in basis points. Returns are calculated using
monthly data from the period 31/01/03 – 31/12/21.
Asia fixed income GTM ASIA 63
JACI spread JACI rating weights

Basis points over U.S. Treasury Share of market capitalization
1,400 AAA
Non- 1% AA
10-yr average Latest investment 7%
Non-investment grade 535bps 693bps grade
1,200 19%
JACI 275bps 271bps
1,000
800
A
Fixed income
32%
600
400
200
BBB
41%
0
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22

The JACI is the J.P. Morgan Asia Credit Index.
China bonds GTM ASIA 64
Bond yields* Value of defaults in onshore market

Yield per annum RMB billion
12% 250
10%
200
8%
120
150
19 52
33
6%
Fixed income
100
4%
132
118 114
50 102
2% 7
20
6 34
1 20
0% 0 7
'11 '13 '15 '17 '19 '21 '14 '15 '16 '17 '18 '19 '20 '21
CNH China offshore credit USD China offshore credit State owned enterprises (SOE) Privately owned enterprises (POE)
3-year China government bond
Source: J.P. Morgan Economics Research, J.P. Morgan Asset Management; (Left) FTSE Russell, National Interbank Funding Center.
*Credit indices shown are yield-to-worst, government bond index shown displays yield-to-maturity. FTSE Dim Sum Bond Index (CNH China offshore credit), J.P. Morgan
Asia Credit China Index (USD China offshore credit).
Yields are not guaranteed, positive yield does not imply positive return.
Asset class returns GTM ASIA 65
10-yrs ('12 - '21)

2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 4Q '21 Ann. Ret. Ann. Vol.
APAC DM Asian Asian EM ex- APAC DM APAC DM DM DM EM ex-
EMD Cash
ex-JP Equities Bonds Bonds Asia ex-JP Equities ex-JP Equities Equities Equities Asia
8.5% 22.6% 27.4% 8.3% 2.8% 25.2% 37.3% 1.8% 28.4% 22.8% 22.3% 7.9% 13.3% 21.8%
Global Global Global EM ex- Asian APAC DM EM ex- APAC APAC
U.S. IG U.S. IG EMD Diversified
Corp HY Corp HY Corp HY Asia Bonds ex-JP Equities Asia ex-JP ex-JP
8.1% 18.9% 8.4% 7.5% 1.2% 14.0% 24.7% -0.8% 19.5% 16.5% 8.1% 1.0% 8.0% 15.7%
Global DM Global EM ex- DM
EMD Diversified EMD Cash EMD Diversified Diversified U.S. IG Diversified
Bonds Equities Bonds Asia Equities
5.6% 18.5% 5.4% 5.5% 0.0% 10.2% 23.1% -1.2% 16.9% 11.2% 3.5% 0.2% 7.3% 13.2%
Asian DM APAC DM DM DM Global Global
Diversified U.S. IG Diversified U.S. IG EMD Diversified
Bonds Equities ex-JP Equities Equities Equities Corp HY Corp HY
4.1% 16.5% 3.7% 5.5% -0.3% 8.2% 17.2% -2.5% 16.4% 9.9% 2.0% 0.0% 6.4% 8.3%
Global Global Global Global
Diversified Cash Diversified U.S. IG Diversified U.S. IG Cash Cash EMD EMD
Corp HY Corp HY Corp HY Bonds
2.6% 15.4% 0.0% 3.3% -0.7% 8.1% 10.3% -3.5% 14.5% 9.2% 0.0% 0.0% 5.0% 8.0%
EM ex- Asian APAC Global APAC Global Global Asian Global
Cash EMD EMD EMD U.S. IG
Asia Bonds ex-JP Bonds ex-JP Corp HY Corp HY Bonds Corp HY
0.1% 14.8% -1.4% 3.1% -3.2% 7.1% 9.3% -4.6% 14.4% 8.2% -1.0% -0.4% 4.9% 7.2%
Other asset classes
Asian Global Global Global Asian Global

Diversified U.S. IG Diversified U.S. IG Diversified EMD U.S. IG U.S. IG
Bonds Bonds Bonds Corp HY Bonds Bonds
-2.4% 14.3% -1.5% 0.6% -3.4% 6.1% 7.4% -6.0% 13.4% 6.3% -1.5% -0.7% 4.7% 5.5%
DM Global Global Global Asian DM Asian Asian APAC Global Global
U.S. IG U.S. IG EMD
Equities Bonds Corp HY Corp HY Bonds Equities Bonds Bonds ex-JP Bonds Bonds
-5.0% 9.8% -2.6% 0.2% -4.9% 5.8% 6.4% -8.2% 11.3% 5.9% -2.4% -0.7% 1.8% 4.8%
APAC Global APAC Global Asian EM ex- Global APAC Asian EM ex- Asian
EMD Cash Cash
ex-JP Bonds ex-JP Bonds Bonds Asia Bonds ex-JP Bonds Asia Bonds
-15.4% 4.3% -6.6% 0.0% -9.1% 2.1% 5.8% -11.5% 6.8% 0.5% -2.7% -1.4% 0.6% 4.2%
EM ex- EM ex- EM ex- EM ex- APAC EM ex- Global EM ex-
Cash Cash Cash Cash Cash Cash
Asia Asia Asia Asia ex-JP Asia Bonds Asia
-19.6% 0.1% -9.3% -13.3% -25.1% 0.3% 0.8% -13.7% 2.2% -9.7% -4.7% -2.4% 0.6% 0.2%
Source: Bloomberg Finance L.P., Dow Jones, FactSet, J.P. Morgan Economic Research, MSCI, J.P. Morgan Asset Management.
The “Diversified” portfolio assumes the following weights: 20% in the MSCI World Index (DM Equities), 20% in the MSCI AC Asia Pacific ex-Japan (APAC ex-JP), 5% in the
MSCI EM ex-Asia (EM ex-Asia), 10% in the J.P. Morgan EMBIG Index (EMD), 10% in the Bloomberg Barclays Aggregate (Global Bonds), 10% in the Bloomberg Barclays
Global Corporate High Yield Index (Global Corporate High Yield), 15% in J.P. Morgan Asia Credit Index (Asian Bonds), 5% in Bloomberg Barclays U.S. Aggregate Credit –
Corporate Investment Grade Index (U.S. IG) and 5% in Bloomberg Barclays U.S. Treasury – Bills (1-3 months) (Cash). Diversified portfolio assumes annual rebalancing.
All data represent total return in U.S. dollar terms for the stated period. 10-year total return data is used to calculate annualized returns (Ann. Ret.) and 10-year price return
data is used to calculate annualized volatility (Ann. Vol.) and reflects the period 31/12/11 – 31/12/21. Please see disclosure page at end for index definitions. Past
performance is not a reliable indicator of current and future results. Diversification does not guarantee investment returns and does not eliminate the risk of loss.
Asset class returns in high inflation environments GTM ASIA 66
High and rising U.S. inflation

Arithmetic average of nominal annual returns of different asset classes for quarters in which inflation was above median and rising, 4Q1991 to 3Q2021
25%
20%
20%
Average inflation: 3.1%
15% 13%
11%
10%
10%
7% 6% 6%
5% 5%
5% 3%
0%
U.S. equities EM equities Global bonds U.S. govt. U.S. inv. grade U.S. high yield EM debt* Real estate Commodities Cash**
bonds
High and falling U.S. inflation

Arithmetic average of nominal annual returns of different asset classes for quarters in which inflation was above median and falling, 4Q1991 to 3Q2021
Other asset classes
20%
16%
15% Average inflation: 3.0%
11% 11%
10% 8% 7% 8% 8%
6%
4%
5%
0%
-5%
-5%
-10%
U.S. equities EM equities Global bonds U.S. govt. U.S. inv. grade U.S. high yield EM debt* Real estate Commodities Cash**
bonds
Source: Barclays, Bloomberg, Dow Jones, FactSet, Federal Reserve, J.P. Morgan, MSCI Global, NCREIF, Strategas/Ibbotson, J.P. Morgan Asset Management. Median
inflation was 2.33% in measured period. Rising or falling inflation distinction is relative to the previous quarter. High and rising inflation occurred in 34 of the 120 measured
quarters. High and falling inflation occurred in 26 of the 120 measured quarters. *EM debt based on the period 4Q1994-3Q2021. **Cash based on the period 4Q1992-
3Q2021. Based on Shiller S&P 500 Composite total return index (U.S. equities), MSCI Emerging Markets Index (EM equities), Bloomberg Barclays Global Aggregate
(Global bonds), Bloomberg Barclays Aggregate U.S. Treasury Index (U.S. govt. bonds), Bloomberg Barclays Aggregate U.S. Corporate Investment Grade Index (U.S. inv.
grade), Bloomberg Barclays U.S. Corporate High Yield Index (U.S. high yield), J.P. Morgan EMBI Global (EM debt), NCREIF Property Index (Real estate), S&P GSCI
(Commodities) and Bloomberg Barclays U.S. Treasury – Bills (1-3 months) (Cash). Past performance is not a reliable indicator of current and future results.
Volatility GTM ASIA 67
VIX index*
90 12
6
80
70
Recession
60 8
3 7
4 5
50 1 2
9
10
11
10
40
30 Average: 19.5
20
10
0
'90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
VIX breaks 35 in six S&P 500 Performance VIX returns to long-term

Related event
months** On the day After 1 month After 3 months After 12 months average***(days)
1 6-Aug-90 Recession – oil price shock and rate hikes -3.0% -4.2% -5.9% 16.8% 218
Other asset classes
2 30-Oct-97 Asian crisis -1.7% 7.5% 9.1% 21.6% 113

3 27-Aug-98 Long-Term Capital Management -3.8% 0.6% 13.8% 29.3% 309
4 17-Sep-01 Recession – collapse of dot-com bubble -4.9% 2.9% 9.2% -15.9% 172
5 15-Jul-02 Enron accounting scandal -0.4% 1.3% -8.3% 9.0% 304
6 17-Sep-08 Recession – global financial crisis -4.7% -14.8% -21.8% -7.9% 476
7 7-May-10 Greece bailout package, austerity imposed -1.5% -5.0% 1.0% 21.2% 157
8 8-Aug-11 European debt crisis, U.S. credit downgrade -6.7% 5.9% 12.7% 25.2% 165
9 24-Aug-15 Chinese yuan devaluation -3.9% 2.1% 10.2% 15.5% 44
10 5-Feb-18 Bond market re-pricing growth and rate hikes -4.1% 3.4% 0.9% 3.4% 9
11 24-Dec-18 Global growth and market liquidity fears -2.7% 12.4% 19.0% 37.1% 18
12 27-Feb-20 Recession – Coronavirus pandemic -4.4% -13.2% 1.7% 27.9% 383
Median -3.9% 1.7% 5.4% 19.0%
Average -3.5% -0.1% 3.5% 15.3%
Source: FactSet, J.P. Morgan Asset Management.

*The VIX-CBOE Volatility Index measures market expectations of near-term volatility conveyed by S&P 500 Index (SPX) option prices. **First day when VIX breaks 35;
subsequent spikes above 35 within the next six months are not included. ***Number of days for VIX to return to its long-term average after initial VIX spikes above 35.
U.S. dollar GTM ASIA 68
U.S. dollar and interest rate differential

Index Yield spread
140 3.0%
Recessions
130 2.5%
120 2.0%
110 1.5%
100 1.0%
90 0.5%
Other asset classes
80 0.0%
70 -0.5%
60 -1.0%
'96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20
U.S. dollar index* U.S. minus DM 10-year government bond yield**
Source: FactSet, OECD, Tullett Prebon, WM/Reuters, J.P. Morgan Asset Management. *The U.S. dollar index shown here is a nominal trade-weighted index of major
trading partners’ currencies. Major currencies are the British pound, Canadian dollar, euro, Japanese yen, Swedish kroner and Swiss franc.
**DM is developed markets and the yield is calculated as a GDP-weighted average of the 10-year government bond yields of Australia, Canada, France, Germany, Italy,
Japan, Switzerland and the UK.
Currencies GTM ASIA 69
Currency deviation from 10-year average in real effective exchange rate* terms
Number of standard deviations away from average
4
3 FX above
long-term
average
2
Max
1 Current
-1
Other asset classes
Min
-2
FX below
-3 long-term
average
-4
Source: FactSet, J.P. Morgan Economic Research, J.P. Morgan Asset Management.
*The real trade-weighted exchange rate index is the weighted average of a market’s currency relative to a basket of other major currencies adjusted for the effects of
inflation. The weights are determined by comparing the relative trade balances, in terms of one market’s currency, with other markets within the basket.
Emerging market external positions GTM ASIA 70
Current account positions, currency movements and reserve adequacy

Currency
appreciation
vs. USD
15%
10%
Local currency vs. USD change, Last 12 months
China
5% Vietnam
Indonesia India
0% Mexico
Philippines
Malaysia
-5% Russia
Poland
-10%
Brazil Chile South Africa Korea
-15% Thailand
-20% Colombia
Argentina
-25%
Other asset classes
Key: Asia EM ex-Asia

-30%
Weaker position
-35%
-40% = Adequate reserves*

-45% Turkey
-50% Stronger position
-55%
-6% -4% -2% 0% 2% 4% 6%
Currency
depreciation
Current account as % of GDP, 2020
vs. USD
Source: FactSet, International Monetary Fund, J.P. Morgan Asset Management.

*Adequate reserves are stocks of a country’s foreign exchange reserves that can cover 3 months of imports (the amount of times available reserves can cover 3 months’
worth of imports) and cover short-term debt due in the next year (the amount of times available reserves can pay off debt maturing in the next 12 months and any
payments on longer-term debt due in the next 12 months). The larger the bubble, the larger the amount of reserve coverage.
Commodities GTM ASIA 71
Commodity prices Returns 2017 - 2021

Commodity price z-scores for the past five years, USD per unit 2017 2018 2019 2020 2021 4Q '21 Ann. Ret. Ann. Vol.
-4 -2 0 2 4 M&M (E)
Euro M&M
Gold (E) M&M (E) Energy (E) Gold (E) M&M (E) Gold (E)
(FI)
37.5% -0.9% 51.1% 27.6% 44.3% 11.4% 15.8% 29.6%
Commodity Index $59 $106
US M&M
Agri. (E) M&M (E) Gold (E) Comdty. M&M (E) Agri. (E) M&M (E)
$99 (FI)
20.3% -3.5% 17.1% 25.7% 27.1% 7.7% 12.9% 26.7%
Iron Ore $53 $220
EM M&M Energy EM M&M
$113 Agri. (E) Agri. (E) Agri. (E) Gold (E) Energy (E)
(FI) (FI) (FI)
14.7% -3.7% 16.5% 19.5% 23.1% 5.7% 10.8% 26.5%
Gold $1,152 $2,069
US M&M EM M&M US M&M EM M&M EM M&M
$1,829 (FI) (FI) (FI) (FI)
M&M (E) Energy (E)
(FI)
Agri. (E)
9.9% -4.1% 14.0% 10.6% 23.0% 4.1% 7.6% 14.9%

Oil $12 $85
US M&M US M&M US M&M US M&M
$75 Gold (E) Agri. (E) Agri. (E)
(FI) (FI) (FI) (FI)
Comdty.
Agriculture $34 $62 9.4% -8.9% 13.8% 8.5% 6.6% 1.3% 6.9% 13.1%
$61 Energy (E) Comdty.

Energy Energy EM M&M EM M&M Energy Energy
(FI) (FI) (FI) (FI) (FI) (FI)
Copper $4,618 $10,725
Other asset classes
9.1% -11.2% 13.4% 6.0% 2.0% 0.3% 4.6% 10.0%
$9,692 Energy Euro M&M Energy Energy EM M&M

Energy (E) Energy (E) Comdty.
(FI) (FI) (FI) (FI) (FI)
Aluminum $1,422 $3,180 9.0% -11.4% 9.5% 3.5% -0.7% -0.2% 3.7% 9.7%
$2,069 Euro M&M Euro M&M Euro M&M Euro M&M US M&M
Gold (E) Comdty. Comdty.
(FI) (FI) (FI) (FI) (FI)
3.9% -13.0% 7.7% -3.1% -0.7% -0.5% 2.1% 7.1%
Euro M&M Euro M&M

Comdty. M&M (E) Energy (E) Gold (E) Comdty. Energy (E)
(FI) (FI)
Example Low level High level
1.7% -17.8% 5.2% -28.5% -7.7% -1.6% 1.8% 5.4%
Current
Source: Bloomberg Finance L.P., FactSet, J.P. Morgan Asset Management; (Left) CME, CRB, LME; (Right) Barclays, J.P. Morgan Economic Research, MSCI. Commodities represented by
appropriate Bloomberg Commodity sub-index priced in U.S. dollars. Crude oil is West Texas Intermediate (WTI) crude. Aluminum and copper is price on LME. Iron Ore is iron ore 62% Fe -
Cost and Freight China Port. Other commodity prices represented by futures contracts. Z-scores calculated using daily prices over past five years. Based on Bloomberg Commodity Index
(Comdty.); MSCI ACWI Select – Energy Producers IMI, Metals & Mining Producers ex Gold & Silver IMI, Gold Miners IMI, Agriculture Producers IMI (Energy (E), M&M (E), Gold (E), Agri.
(E)); Bloomberg Barclays Global Agg, Credit – Corporate Energy Index (Energy (FI)); Bloomberg Barclays U.S. Agg. Credit – Corporate High Yield Metals & Mining Index (U.S. M&M (FI));
Bloomberg Barclays Euro Agg. Credit – Corporate Metals & Mining Index (Euro M&M (FI)); J.P. Morgan Emerging Market Corporate Credit – Corporate Metals & Mining Index (EM M&M
(FI)). 5-year total return data used to calculate annualized returns (Ann. Ret.) and 5-year price return data used to calculate annualized volatility (Ann. Vol.), reflects the period 31/12/16 –
71 31/12/21. Past performance is not a reliable indicator of current and future results. Guide to the Markets – Asia. Data reflect most recently available as of 31/12/21.
Industrial metals GTM ASIA 72
China credit impulse and industrial metals’ prices Industrial metal prices
% of nominal GDP, y/y change y/y change, 3-month moving average USD / tonne, indexed to 100 as of 03/01/11
25% 100% 300
20% 80%
250
15% 60%
200
10% 40%
5% 20% 150
0% 0%
Other asset classes
100
-5% -20%
50
-10% -40%
-15% -60% 0
'05 '07 '09 '11 '13 '15 '17 '19 '21 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Bloomberg
China credit impulse Copper Zinc Cobalt Aluminum
Industrial Metals Index
Source: FactSet, J.P. Morgan Asset Management; (Left) Bloomberg, People’s Bank of China.
Credit impulse measures the year-over-year change in credit flow (net flow of total social financing) as a percentage of nominal GDP. Past performance is not a reliable
indicator of current and future results.
Oil: Short-term market dynamics GTM ASIA 73
Global oil supply and demand Price of oil

Million barrels / day Brent crude, USD / bbl
105 150
Forecast
07/2008: $145.65
100 125
06/2014: $115.19
95 100
12/2021: $77.78
90 75
Other asset classes
85 50
12/2008: $33.73
80 25
4/2020: $9.12
75 0
'18 '19 '20 '21 '22 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22
Demand Supply
Source: FactSet, J.P. Morgan Asset Management; (Left) U.S. Energy Information Administration; (Right) Commodity Research Bureau.
Alternative sources of income GTM ASIA 74
Asset class yields

12%
10.9%
10%
8.4%
8%
6% 5.4% 5.3% 5.2%

4.9% 4.8%
4.6%
4.1%
4% 3.6%
Other asset classes
3.0%
2.5%
2.3% 2.1%
2% 1.5%
1.3%
0%
Global Asia HY EM high APAC ex-JP Global USD Infra. Local cur. Private DM high Global Eur. APAC Convertibles U.S. U.S.
transport bonds div. equity high div. HY bonds EMD assets EMD real estate div. equity REITs equity ex-JP equity 10-year equity
equity
Equity Fixed income Alternatives
Source: Alerian, Bank of America, Bloomberg Finance L.P., Clarkson, Drewry Maritime Consultants, FactSet, Federal Reserve, FTSE, MSCI, Standard & Poor’s, J.P.
Morgan Asset Management. Global transport: Levered yields for transport assets are calculated as the difference between charter rates (rental income), operating
expenses, debt amortization and interest expenses, as a percentage of equity value. Yields for each of the sub-vessel types above are calculated and respective
weightings are applied to each of the sub-sectors to arrive at the current levered yields for Global Transportation; asset classes are based on MSCI Global Property Fund
Index (Private real estate), FTSE NAREIT Global REITs (Global REITs), MSCI Global Infrastructure Asset Index (Infra. assets), Bloomberg Barclays U.S Convertibles
Composite (Convertibles), Bloomberg Barclays Global High Yield Index (Global HY bonds), J.P. Morgan Government Bond Index EM Global (GBI-EM) (Local currency
EMD), J.P. Morgan Emerging Market Bond Index Global (EMBIG) (USD EMD), J.P. Morgan Asia Credit Index Non-investment Grade (Asia HY bonds), MSCI Asia Pacific
ex-Japan equities (APAC ex-JP equity), MSCI Asia Pacific ex-Japan High Dividend Yield Index (APAC ex-JP high div. equity), Emerging Markets High Dividend Yield
Index (EM high div. equity), MSCI World High Dividend Yield Index (DM high div. equity), MSCI Europe (Eur. equity), MSCI USA (U.S. equity). Transport yield is as of
30/09/21, Infrastructure 30/06/21 and Private Real Estate 30/06/21. Past performance is not a reliable indicator of current and future results.
Understanding alternatives GTM ASIA 75
Alternatives and portfolio risk/return* Public and private market correlations

Annualized volatility and returns, 2Q96 – 3Q21 Quarterly returns
10% Financial Global
Other
Private Hedge
real
assets real estate markets funds
assets
U.S. U.S. Equity

Global Global U.S. APAC Global Rel. Global
2008 - 2021 Direct Private Long/
60% Stocks Bonds Equities Core RE Core RE Infra.
Lending Equity Short
Value Macro
20% Bonds
9% 20% Alternatives
Global Bonds 1.0
Global Equities 0.3 1.0

40% Stocks
40% Bonds 70% Stocks
20% Alternatives 30% Bonds U.S. Core RE -0.1 0.1 1.0
Return
8%
APAC Core RE -0.1 0.1 0.8 1.0
50% Stocks
Other asset classes
50% Bonds Global Infra. -0.1 -0.1 0.3 0.2 1.0

20% Stocks
60% Bonds
20% Alternatives U.S. Direct
0.0 0.7 0.3 0.3 0.2 1.0
Lending
7%
U.S. Private
0.2 0.9 0.3 0.4 0.0 0.8 1.0
Equity
30% Stocks Equity

0.2 1.0 0.0 0.0 0.0 0.7 0.9 1.0
70% Bonds Long/Short
Rel. Value 0.2 0.9 0.0 0.0 0.0 0.9 0.8 0.9 1.0
6%
2% 4% 6% 8% 10% 12%
Volatility Global Macro 0.3 0.4 -0.1 -0.1 0.0 0.2 0.3 0.5 0.4 1.0
Source: Barclays, Bloomberg, FactSet, HFRI, NCREIF, J.P. Morgan Asset Management; (Left) Standard & Poor’s; (Right) Cambridge Associates, Cliffwater MSCI. *Stocks:
S&P 500. Bonds: Bloomberg Barclays U.S. Aggregate. Alternatives: equally weighted composite of hedge funds (HFR FW Comp.) and private real estate. The volatility and
returns are based on data from the period 30/06/96 – 30/06/21. RE – real estate. Global equities: MSCI AC World Index. Global bonds: Bloomberg Barclays Global
Aggregate Index. U.S. core real estate: NCREIF Property Index – Open End Diversified Core Equity component. Asia Pacific (APAC) core real estate: IPD Global Property
Fund Index – Asia-Pacific. Global infrastructure (infra.): MSCI Global Quarterly Infrastructure Asset Index (equal-weighted blend). U.S. direct lending: Cliffwater Direct
Lending Index. U.S. private equity: Cambridge Associates U.S. Private Equity Index. Hedge fund indices include equity long/short, relative value and global macro and are
all from HFRI. All correlation coefficients are calculated based on USD quarterly total return data for the period 30/06/08 – 31/06/21. Past performance is not a reliable
75 indicator of current and future results. Guide to the Markets – Asia. Data reflect most recently available as of 31/12/21.
ESG considerations GTM ASIA 76
“I buy from companies that are conscious and supportive of APAC-domiciled sustainable mutual fund and ETF AUM*
protecting the environment.” USD billions
% of adults 90
90%
80
80%
70
70%
60
60%
50
50%
40
40%
30% 30
20% 20
Investing principles
10% 10
0% 0
'00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20
Agree Disagree
Source: J.P. Morgan Asset Management. (Left) PwC’s June 2021 Global consumer insights pulse survey was conducted in March 2021. It polled 8,681 consumers across
22 territories. The respondents were at least 18 years old and were required to have shopped online at least once in the previous year.
(Right) Morningstar Direct. *APAC-domiciled funds include Australia, China, Hong Kong, India, Indonesia, Japan, Korea, Malaysia, Philippines, Singapore, Taiwan and
Thailand.
Emissions targets and global energy mix GTM ASIA 77
Greenhouse gas emission targets Global energy mix

Billion tonnes/year, CO2 equivalent % primary energy consumption
18 Forecast
Current Illustrative path
policy to government
forecast 100
net-zero targets
16
90
14
80
12
70
10 60
50
8
40
6
30
4
20
2
10
0 0
'90 '00 '10 '20 '30 '40 '50 '60 '70 '75 '80 '85 '90 '95 '00 '05 '10 '15 '20 '25 '30 '35 '40 '45 '50
U.S. China EU Oil Coal Gas Nuclear and hydro Renewables
Source: J.P. Morgan Asset Management; (Left) Climate Action Tracker; (Right) BP Energy Outlook 2020. Forecast is based on BP’s scenario for global net-zero emissions
by 2050.
Performance of sustainable investing GTM ASIA 78
Global sustainable funds performance Spread between green and traditional corporate bonds
Ranked by Morningstar category quartile Basis points, spread difference between green and traditional bonds
100% 2
90% 1
80% 0
55%
70% 59% 60% -1
60% -2
50% -3
40% -4
Green bonds trading at
a premium/lower spread
30% -5 vs. traditional bonds
45%
20% 41% 40% -6
10% -7
0% -8
2020 3-year 5-year Jan '19 Jul '19 Jan '20 Jul '20 Jan '21 Jul '21
Bottom half Top half
Source: J.P. Morgan Asset Management. (Left) Morningstar Direct. To identify sustainable funds, we searched Morningstar Direct, as follows: 1. Open-End Funds and
ETFs universe. 2. Domicile = Global. 3. Sustainable Investment Overall = Yes. 4. Oldest share class = Yes. 3-year and 5-year trailing performances reflect the periods
01/06/18 – 31/05/21 and 01/06/16 – 31/05/21, respectively. 2020 includes funds with full-year records only, and 4,106 funds in total (2,313 equity, 1,793 fixed income/asset
allocation/other). 3-year includes 3,321 funds (1,834 equity, 1,487 fixed income/asset allocation/other). 5-year includes 2,642 funds (1,460 equity, 1,182 fixed income/asset
allocation/other). Figures may not match with prior reports due to ongoing revisions by data providers after the prior reports have been published. (Right) Barclays
Research. Data shown is for a Barclays Research custom universe of green and non-green investment grade credits, matched by issuer, currency, seniority and maturity.
The universe consists of 105 pairs, 73 euro-denominated and 32 dollar-denominated, and 59 financials and 46 non-financials. Past performance is not a reliable indicator
of current and future results.
Developed market (DM) vs. emerging market (EM) yields GTM ASIA 79
DM real and nominal yields* EM real and nominal yields*
2% 12%
10%
1%
8%
0%
6%
-1%
4%
-2%
2%
-3%
0%
-4% -2%
Nominal yield Real yield Nominal yield Real yield
Source: FactSet, J.P. Morgan Asset Management.

*Real yield is calculated based on the last 12-month average Consumer Price Index (CPI) for each respective market. Nominal yields are the 10-year local currency
government bond yield for each respective market. Past performance is not a reliable indicator of current and future results.
Equity annual returns and intra-year declines GTM ASIA 80
MSCI AC Asia Pacific ex-Japan intra-year declines vs. calendar year returns
Despite average intra-year drops of -20% (median: -18%), annual returns are positive in 21 of 34 (62%) years
100%
80%
80%
68%
60%
47%
44%
40% 33% 34%
27% 29%
26%
17% 19% 17% 19% 20%
20% 15% 16%
9%
6%
4% 4%
-36% -31% 0.5%
0%
-0.2%
-7% -5% -4% -5%
-5% -8%
-8% -14%-12%-11% -9% -12%
-20% -10%-14% -16% -12% -13% -13% -18%-16%-16%-13% -13% -16%-11%
-18% -18%-19% -19% -18%
-21% -21%
-24% -25% -27% -25%
-40% -30% -32%
-34%-34%
-41%-40%
-53%
-60%
-62%
-80%
'88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20
Calendar year return Intra-year decline

Returns are price returns based on MSCI AC Asia Pacific ex-Japan Index in U.S. dollar terms. Intra-year decline is the largest peak to trough decline during the respective
year. Past performance is not a reliable indicator of current and future results.
Fixed income annual returns and intra-year declines GTM ASIA 81
Bloomberg Barclays Global Aggregate USD intra-year declines vs. calendar year returns
Despite average intra-year drops of -3% (median: -3%), annual returns are positive in 16 of 19 (84%) years
10%
9%
8% 8% 8%
7%
7%
6% 6%
6% 5%
5%
4% 4%
4%
4% 4%
3%
2%
2%
1%
0%
0%
-1%
-2% -1% -1%
-2% -1%
-2% -2% -2%
-2% -2% -2%
-3% -3%
-4% -3% -4%
-4%
-5% -5% -5%
-6% -5%
-6%
-8%
'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Calendar year return Intra-year decline
Source: Bloomberg Barclays, FactSet, J.P. Morgan Asset Management.

Returns are total returns based on Bloomberg Barclays Global Aggregate USD Hedged Total Return Index. Intra-year decline is the largest peak to trough decline during
the respective year. Past performance is not a reliable indicator of current and future results.
The compounding effect GTM ASIA 82
MSCI World Index: Performance under different scenarios

Index, 1970 = 100
16,000
Annualized return
Total return (dividends received and reinvested back into equities) 10.0% 14,123
14,000 Total return (dividends received and reinvested in cash)* 8.7%
Total return (dividends received but not reinvested) 7.5%
Price return 6.9%
12,000
10,000
8,000 7,627
6,000
4,182
4,000
3,132
2,000
0
'70 '75 '80 '85 '90 '95 '00 '05 '10 '15 '20

*Reinvestment in cash based on the same month U.S. three-month Treasury bill (secondary market) yield.
Portfolio construction, asset class returns and volatility GTM ASIA 83
Annualized returns and volatility

Total returns in USD*
16%
Hypothetical portfolio construction
Conservative Balanced Aggressive High yielding
14% DM equities 10% 30% 20% DM HD equities 25%
EM equities 5% 10% 40% EM HD equities 10%
U.S. HY 10% 15% 10% APxJ HD equities 10%
12% U.S. bonds 25% 10% 5% U.S. HY 20%
Cash 35% 10% 0% EMD 15%
U.S.
EMD 10% 15% 5% Asian bonds 15%
Annualized returns
10% REITs 5% 10% 20% REITs 5%
DM
8% Gold AxJ HD Private real estate
REITs
U.S. HY APxJ HD AxJ
High yielding
6% EMD APxJ
Hedge fund - rel val Asian bonds Balanced Aggressive EM HD
DM HD
Hedge fund - distressed
U.S. bonds Europe EM
4% Conservative
Hedge fund - macro
2% Hedge fund - mkt neutral
Cash
0%
0% 5% 10% 15% 20% 25%
Annualized volatility
High dividend (HD) equities Equities Bonds and cash Alternatives Portfolios
Source: Bloomberg Finance L.P., Dow Jones, FactSet, MSCI, Standard & Poor’s, J.P. Morgan Asset Management.
Hypothetical portfolios were created to illustrate different risk/return profiles and are not meant to represent actual asset allocation.
U.S. dollar total return calculations are based on MSCI Total Return, Bloomberg Barclays and J.P. Morgan indices. AxJ stands for MSCI AC Asia ex-Japan and APxJ
stands for MSCI AC Asia Pacific ex-Japan. *Monthly total returns between 31/12/06 and 31/12/21 are used for all asset classes except hedge funds, where monthly total
returns between 30/11/06 and 30/11/21 are used.
Correlation between stocks and bonds GTM ASIA 84
Correlations between stocks and sovereign bonds

Weekly rolling six-month correlation of equities and sovereign bond prices*
0.8
Stocks and bonds moving
in the same direction
0.6
0.4
0.2
0.0
-0.2
-0.4
-0.6
-0.8
Stocks and bonds moving
in the opposite direction
-1.0
'01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21
S&P 500 / U.S. government bonds* MSCI AC World / Global government bonds*
Source: Bloomberg Finance L.P., FactSet, MSCI, J.P. Morgan Asset Management.
*Rolling six-month pairwise correlations between weekly returns in equity (S&P 500 and MSCI All Country World Index price indices) and bond (Bloomberg Barclays U.S.
Aggregate Government Treasury and Bloomberg Barclays Global Aggregate Government Treasuries price indices) markets.
J.P. Morgan Asset Management: Index Definitions GTM ASIA 85
All indexes are unmanaged and an individual cannot invest directly in an index. Index returns do not include fees The MSCI Europe ex UK IndexSM is a free float-adjusted market capitalization weighted index that is designed to
or expenses. measure the equity market performance of the developed markets in Europe, excluding the United Kingdom. The
The S&P 500 Index is widely regarded as the best single gauge of the U.S. equities market. This world-renowned index MSCI Europe ex UK Index consists of the following 15 developed market country indices: Austria, Belgium, Denmark,
includes a representative sample of 500 leading companies in leading industries of the U.S. economy. Although the S&P Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, and Switzerland.
500 Index focuses on the large-cap segment of the market, with approximately 75% coverage of U.S. equities, it is also The MSCI Pacific ex Japan IndexSM is a free float-adjusted market capitalization index that is designed to measure
an ideal proxy for the total market. An investor cannot invest directly in an index. equity market performance in the Pacific region, excluding Japan. As of June 2007, the MSCI Pacific Index consisted of
The Tokyo Stock Price Index ('TOPIX') is a composite index of all common stocks listed on the First Section of Tokyo the following 4 Developed Markets: Australia, Hong Kong, New Zealand, and Singapore.
Stock Exchange (TSE).The index is basically a measure of the changes in aggregate market value of TSE common The MSCI USA IndexSM is designed to measure the performance of the large and mid cap segments of the U.S. market.
stocks. The base for the index is the aggregate market value of its component stocks as of the close on January 4, 1968. With 586 constituents, the index covers approximately 84% of the free float-adjusted market capitalization in the U.S.. The
The aggregate market value is calculated by multiplying the number of listed shares of each component stock by its price MSCI USA Index was launched on Dec ember 31, 1969.
and totaling the products derived there from.
The MSCI China IndexSM captures large and mid cap representation across China H shares, B shares, Red chips and P
The Bombay Exchange Sensitive Index (‘SENSEX’), first compiled in 1986, was calculated on a "Market Capitalization- chips. With 148 constituents, the index covers about 84% of this China equity universe. The MSCI China Index was
Weighted" methodology of 30 component stocks representing large, well-established and financially sound companies launched on December 31, 1992.
across key sectors. The base year of SENSEX was taken as 1978-79. SENSEX today is widely reported in both domestic
and international markets through print as well as electronic media. It is scientifically designed and is based on globally The MSCI Indonesia IndexSM is designed to measure the performance of the large and mid cap segments of the
accepted construction and review methodology. Since September 1, 2003, SENSEX is being calculated on a free-float Indonesian market. With 25 constituents, the index covers about 84% of the Indonesian equity universe. The MSCI
market capitalization methodology. Indonesia Index was launched on December 31, 1990.
The Korea Composite Stock Price Index (‘KOSPI’) is market capitalization based index on all common stocks listed on The MSCI Korea IndexSM is designed to measure the performance of the large and mid cap segments of the South
the Stock Market Division of the Korea Exchange (KRX) and excludes preferred stocks. The stock price index is Korean market. With 105 constituents, the index covers about 84% of the Korean equity universe. The MSCI Korea Index
calculated using the actual price traded on the market and not the “base price” used for market management such as was launched on December 31, 1989.
establishment of price change limits. When no market price is available for issues that are not being traded or have halted The MSCI India IndexSM is designed to measure the performance of the large and mid cap segments of the Indian
trading, the latest closing price is used. KOSPI was a assigned a base index of 100 set to January 4, 1980. market. With 71 constituents, the index covers about 84% of the Indian equity universe. The MSCI India Index was
The China Shenzhen Composite Index is an actual market-cap weighted index that tracks the stock performance of all launched on December 31, 1993.
the A-share and B-share lists on Shenzhen Stock Exchange. The index was developed on April 3, 1991 with a base price The MSCI Japan IndexSM is designed to measure the performance of the large and mid cap segments of the Japan
of 100. market. With 315 constituents, the index covers approximately 84% of the free float-adjusted market capitalization in
The Euro Stoxx 600 Index represents large, mid and small capitalization companies across 18 European countries. Japan. The MSCI Japan Index was launched on December 31, 1969.
The MSCI® EAFE (Europe, Australia, Far East) Net Index is recognized as the pre-eminent benchmark in the United The MSCI Hong Kong IndexSM is designed to measure the performance of the large and mid cap segments of the Hong
States to measure international equity performance. It comprises 21 MSCI country indexes, representing the developed Kong market. With 42 constituents, the index covers approximately 84% of the free float-adjusted market capitalization of
markets outside of North America. the Hong Kong equity universe. The MSCI Hong Kong Index was launched on December 31, 1972.
The MSCI Emerging Markets IndexSM is a free float-adjusted market capitalization index that is designed to measure The MSCI Taiwan IndexSM is designed to measure the performance of the large and mid cap segments of the Taiwan
equity market performance in the global emerging markets. As of June 2007, the MSCI Emerging Markets Index market. With 113 constituents, the index covers approximately 84% of the free float-adjusted market capitalization in
consisted of the following 25 emerging markets indices: Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Taiwan. The MSCI Taiwan Index was launched on December 31, 1989.
Hungary, India, Indonesia, Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, The MSCI Environmental, Social and Governance (ESG) Universal Indices are designed to address the needs of
South Africa, Taiwan, Thailand, and Turkey. asset owners who may look to enhance their exposure to ESG while maintaining a broad and diversified universe to
The MSCI ACWI (All Country World Index) Index is a free float-adjusted market capitalization weighted index that is invest in. By re-weighting free-float market cap weights based upon certain ESG metrics tilting away from free-float
designed to measure the equity market performance of developed and emerging markets. As of June 2009 the MSCI market cap weights, the indices enhance exposure to those companies that demonstrate both a higher MSCI ESG Rating
ACWI consisted of 45 country indices comprising 23 developed and 22 emerging market country indices. and a positive ESG trend, while maintaining a broad and diversified investment universe.
The following MSCI Total Return IndicesSM are calculated with gross dividends:
This series approximates the maximum possible dividend reinvestment. The amount reinvested is the dividend distributed
to individuals resident in the country of the company, but does not include tax credits.
The MSCI Europe IndexSM is a free float-adjusted market capitalization index that is designed to measure developed
market equity performance in Europe. As of June 2007, the MSCI Europe Index consisted of the following 16 developed
market country indices: Austria, Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands,
Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom.
The MSCI Pacific IndexSM is a free float-adjusted market capitalization index that is designed to measure equity market
performance in the Pacific region. As of June 2007, the MSCI Pacific Index consisted of the following 5 Developed Market
markets: Australia, Hong Kong, Japan, New Zealand, and Singapore.
85
J.P. Morgan Asset Management: Index Definitions, Risks and
Disclosures GTM ASIA 86
West Texas Intermediate (WTI) is the underlying commodity for the New York Mercantile Price to forward earnings is a measure of the price-to-earnings ratio (P/E) using forecasted earnings. Price to book
Exchange's oil futures contracts. value compares a stock's market value to its book value. Price to cash flow is a measure of the market's expectations of
The Bloomberg Commodity Index is calculated on an excess return basis and reflects commodity a firm's future financial health. Price to dividends is the ratio of the price of a share on a stock exchange to the dividends
futures price movements. The index rebalances annually weighted 2/3 by trading volume and 1/3 per share paid in the previous year, used as a measure of a company's potential as an investment.
by world production and weight-caps are applied at the commodity, sector and group level for Bonds are subject to interest rate risks. Bond prices generally fall when interest rates rise.
diversification. Roll period typically occurs from 6th-10th business day based on the roll schedule. The price of equity securities may rise, or fall because of changes in the broad market or changes in a company’s
The Bloomberg Commodity Subindexes represent commodity groups and sectors, as well as financial condition, sometimes rapidly or unpredictably. These price movements may result from factors affecting
single commodities, that make up the Bloomberg Commodity Index. The subindexes track individual companies, sectors or industries, or the securities market as a whole, such as changes in economic or political
exchange-traded futures of physical commodities, and the commodity groups and sectors, like in conditions. Equity securities are subject to “stock market risk” meaning that stock prices in general may decline over short
the case of the broad index, are weighted to account for economic significance and market liquidity. or extended periods of time.
The various subindexes include Agriculture, Energy, Livestock, Grains, Industrial Metals, Precious Small-capitalization investing typically carries more risk than investing in well-established "blue-chip" companies since
Metals and Softs. smaller companies generally have a higher risk of failure. Historically, smaller companies' stock has experienced a greater
The Bloomberg Barclays High Yield Index covers the universe of fixed rate, non-investment degree of market volatility than the average stock.
grade debt. Pay-in-kind (PIK) bonds, Eurobonds, and debt issues from countries designated as Mid-capitalization investing typically carries more risk than investing in well-established "blue-chip" companies.
emerging markets (e.g., Argentina, Brazil, Venezuela, etc.) are excluded, but Canadian and global Historically, mid-cap companies' stock has experienced a greater degree of market volatility than the average stock.
bonds (SEC registered) of issuers in non-EMG countries are included. Original issue zeroes, step-
up coupon structures, and 144-As are also included. Real estate investments may be subject to a higher degree of market risk because of concentration in a specific industry,
sector or geographical sector. Real estate investments may be subject to risks including, but not limited to, declines in the
The Bloomberg Barclays 1-3 Month U.S. Treasury Bill Index includes all publicly issued zero- value of real estate, risks related to general and economic conditions, changes in the value of the underlying property
coupon U.S. Treasury Bills that have a remaining maturity of less than 3 months and more than 1 owned by the trust and defaults by borrower.
month, are rated investment grade, and have $250 million or more of outstanding face value. In
addition, the securities must be denominated in U.S. dollars and must be fixed rate and non International investing involves a greater degree of risk and increased volatility. Changes in currency exchange rates and
convertible. differences in accounting and taxation policies can raise or lower returns. Also, some markets may not be as politically
and economically stable as other nations. Investments in emerging markets can be more volatile. The normal risks of
The Bloomberg Barclays Corporate Bond Index is the Corporate component of the U.S. Credit international investing are heightened when investing in emerging markets. In addition, the small size of securities
index. markets and the low trading volume may lead to a lack of liquidity, which leads to increased volatility. Also, emerging
The Bloomberg Barclays TIPS Index consists of Inflation-Protection securities issued by the U.S. markets may not provide adequate legal protection for private or foreign investment or private property.
Treasury. Investments in commodities may have greater volatility than investments in traditional securities, particularly if the
The J.P. Morgan EMBI Global Index includes U.S. dollar denominated Brady bonds, Eurobonds, instruments involve leverage. The value of commodity-linked derivative instruments may be affected by changes in overall
traded loans and local market debt instruments issued by sovereign and quasi-sovereign entities. market movements, commodity index volatility, changes in interest rates, or factors affecting a particular industry or
The J.P. Morgan GBI-EM Global Diversified consists of regularly traded, liquid fixed-rate, commodity, such as drought, floods, weather, livestock disease, embargoes, tariffs and international economic, political
domestic currency government bonds to which international investors can gain exposure. The and regulatory developments. Use of leveraged commodity-linked derivatives creates an opportunity for increased return
weightings among the countries are more evenly distributed within this index. but, at the same time, creates the possibility for greater loss.
The J.P. Morgan Corporate Emerging Markets Bond Index (CEMBI): The CEMBI tracks total Derivatives may be riskier than other types of investments because they may be more sensitive to changes in economic
returns of US dollar-denominated debt instruments issued by corporate entities in Emerging or market conditions than other types of investments and could result in losses that significantly exceed the original
Markets countries, and consists of an investable universe of corporate bonds. investment. The use of derivatives may not be successful, resulting in investment losses, and the cost of such strategies
may reduce investment returns.
The J.P. Morgan Domestic High Yield Index is designed to mirror the investable universe of the
U.S. dollar domestic high yield corporate debt market. There is no guarantee that the use of long and short positions will succeed in limiting an investor's exposure to
domestic stock market movements, capitalization, sector swings or other risk factors. Investing using long and short
The VIX-CBOE Volatility Index measures market expectations of near-term volatility conveyed by selling strategies may have higher portfolio turnover rates. Short selling involves certain risks, including additional costs
S&P 500 Index (SPX) option prices. associated with covering short positions and a possibility of unlimited loss on certain short sale positions.
The MOVE-Merrill Lynch Option Volatility Index is a blended implied normal volatility for Forecasts, projections and other forward looking statements are based upon current beliefs and expectations. They
constant one-month at-the-money options on U.S. Treasuries. are for illustrative purposes only and serve as an indication of what may occur. Given the inherent uncertainties and risks
associated with forecast, projections or other forward statements, actual events, results or performance may differ
materially from those reflected or contemplated. Positive yield does not imply positive return.
J.P. Morgan Asset Management (JPMAM) Global Market Insights Strategy Team as of 31/12/21. There can be no
assurance that the professionals currently employed by JPMAM will continue to be employed by JPMAM or that the past
performance or success of any such professional serves as an indicator of such professional's future performance or
success.
86
J.P. Morgan Asset Management: Risks and Disclosures GTM ASIA 87
The Market Insights program provides comprehensive data and commentary on global markets without reference to products. Designed as a tool to help clients understand the markets and
support investment decision-making, the program explores the implications of current economic data and changing market conditions.
For the purposes of MiFID II, the JPM Market Insights and Portfolio Insights programs are marketing communications and are not in scope for any MiFID II / MiFIR requirements specifically related to
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Copyright 2022 JPMorgan Chase & Co. All rights reserved.
Prepared by: David Kelly, Tai Hui, Clara Cheong, Kerry Craig, Agnes Lin, Chaoping Zhu, Marcella Chow, Ian Hui, Shogo Maekawa and Adrian Tong.
Unless otherwise stated, all data are as of December 31, 2021 or most recently available.
MI-GTMASIA-E DEC 2021
Material ID: 0903c02a823a5888
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MARKET INSIGHTS

Americas Europe Asia

Dr. David Kelly, CFA Karen Ward Tai Hui

Regional economy Equities Other asset classes

EM Asia ex-China* manufacturing PMI and real GDP growth

Index Year-over-year change

Exports Retail and recreation activity

Year-over-year change, 6-month moving average % of pre-COVID-19 activity baseline*

Recovery vs Baseline (%)

Indonesia Malaysia Philippines Singapore Thailand ASEAN Global

Contribution to real GDP growth Caixin/Markit Purchasing Managers’ Indices

Year-over-year change Level

Fixed asset investment Consumption

Year-to-date, year-over-year change Year-over-year change, 3-month moving average

-30% -20% -5%

Property prices and land sales Structure of bank loans

Year-over-year change Outstanding loans as % of nominal GDP

Year-over-year change, 3-month moving average Share of full year quota

-25% -30 0.0%

Chinese yuan exchange rate

CFETS Index* USD/CNY

Real GDP growth

-9.3% -9.0% -8.1%

U.S. China Eurozone Japan

Source: J.P. Morgan Economic Research, J.P. Morgan Asset Management.

Global manufacturing and services PMI Global manufacturing PMI breakdown

Manufacturing Services # m arkets above 50 13 15 15 15 15 13 13 12 13 15 13 14

Global trade activity Exports growth

Supply chain issues

Dissipating supply chain disruption Heightened supply chain disruption

Global shipping costs

China Containerized Freight

Port of LA loaded container ratio* - -

Semiconductor lead times -

DM supplier delivery time***

EM Asia input prices**

EM Asia supplier delivery time***

Headline consumer prices

Below trend Inflation running Above trend

U.S. 6.2% 6.9%

Eurozone 4.1% 4.9%

Japan 0.1% 0.6%

Australia 3.1% 3.1%

China 1.5% 2.3%

India 4.5% 4.9%

Korea -2.1% -1.5%

Taiwan 2.3% 2.6%

Indonesia 1.7% 1.7%

Malaysia 2.9% 3.3%

Thailand 2.4% 2.7%

Brazil 10.7% 10.7%

Mexico 6.2% 7.4%

Russia 4.0% 3.8%

Turkey 19.9% 21.3%

South Africa 5.0% 5.5%

Changes in central bank policy rates

/ Developed markets / Emerging markets

Source: BIS, J.P. Morgan Asset Management.

G4 central bank balance sheets*

Savings rate U.S. household disposable income breakdown

Developed markets 2022 political timeline

27 March Hong Kong

Emerging markets 2022 political timeline