Guide To The Markets Asia

MARKET INSIGHTS
Guide to the
Markets
Asia | 1Q 2023 | As of December 31, 2022
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, CFA
New York New York London Luxembourg Hong Kong Shanghai
Meera Pandit, CFA Jack Manley Hugh Gimber, CFA Tilmann Galler, CFA Ian Hui
New York New York London Frankfurt Hong Kong
Jordan Jackson Stephanie Aliaga Max McKechnie Maria Paola Toschi Adrian Tong Shogo Maekawa
New York New York London Milan Hong Kong Tokyo
Olivia Schubert Nimish Vyas Natasha May Elena Domecq Sahil Gauba Agnes Lin
New York New York London Madrid Mumbai Taipei
Zara Nokes 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. ASEAN: Exports and mobility 32. Global and Asia equity market returns 63. Asset class returns
5. China: Economic snapshot 33. Global equities: Return composition 64. Volatility
6. China: Mobility and vaccination rates 34. Global equities: Earnings expectations 65. U.S. dollar
7. China: Cyclical indicators 35. Global equities: Valuations 66. Currencies
8. China: Property sector 36. Global equities: Growth versus value 67. Emerging market external positions
9. China: Fiscal policy 37. APAC ex-Japan equities: Earnings expectations by 68. Commodities
10. China: Monetary policy and credit growth market and sector 69. Oil: Short-term market dynamics
11. China: Exchange rate 38. APAC ex-Japan equities: Performance drivers 70. Alternative sources of income
39. APAC ex-Japan equities: Performance and earnings 71. Understanding alternatives
40. APAC ex-Japan equities: Earnings trend by revenue
Global economy source and exports
41. APAC ex-Japan equities: Exposure to the U.S. and Investing principles
12. Global growth and inflation forecasts Europe
13. Global Purchasing Managers’ Index (PMI) 42. APAC ex-Japan equities: Dividends 72. Global energy transition
14. Globalization 43. China: Sector earnings and valuations 73. New energy vehicles
15. Global supply chains 44. Europe: Sector earnings and valuations 74. Global commodities and sustainable energy
16. Global inflation 45. United States: Sector earnings and valuations 75. Developed market (DM) vs. emerging market (EM)
17. Global inflation components 46. United States: Sources of earnings per share growth yields
18. Global food and energy inflation 47. United States: Earnings and rate hikes 76. Equity annual returns and intra-year declines
19. Central bank inflation targets 48. United States: Bull and bear markets 77. Fixed income annual returns and intra-year declines
20. Global central bank policy rate changes 78. U.S. market implied recession probabilities
21. G4 central bank policy rates and market expectations 79. U.S. economic cycle and asset performance
Fixed income 80. Long-term returns of asset classes
22. United States: Economic growth and the contribution
to GDP 81. The compounding effect
23. United States: Economic monitor 49. Global fixed income returns 82. Portfolio construction, asset class returns and
24. United States: Consumption and investments 50. Global fixed income: Yields and duration volatility
25. United States: Employment and wages 51. Global fixed income: Interest rate sensitivity 83. 60/40 stock-bond portfolio performance
26. United States: Housing market 52. Global fixed income: Return composition 84. Correlation between stocks and bonds
27. United States: Inflation 53. Global fixed income: Valuations
28. United States: Monetary policy 54. Global fixed income: Government bond yields and
expected inflation
29. United States: Federal Reserve balance sheet
55. Global fixed income: Yields and risks
30. Eurozone: Economic monitor
56. U.S. real yields
31. Eurozone: Energy supply and impact on consumers
57. U.S. investment grade bonds
58. U.S. high yield bond spreads
59. U.S. high yield bond fundamentals
60. U.S. securitized assets
61. Emerging market debt
62. Asia fixed income
3
ASEAN: Exports and mobility GTM ASIA 4
Exports Tourist arrivals

Regional economy
Year-over-year change, 6-month moving average Relative to respective month in 2019

60%
100%
50% 90%
80%
40%
70%
30%
60%
20% 50%
10% 40%
30%
0%
20%
-10%
10%
-20% 0%
'10 '12 '14 '16 '18 '20 '22 Jan '22 Mar '22 May '22 Jul '22 Sep '22 Nov '22
Indonesia Malaysia Philippines Singapore Thailand Indonesia Malaysia Philippines Singapore Thailand
Vietnam Vietnam
Source: FactSet, J.P. Morgan Asset Management; (Left) National Statistics Agencies; (Right) CEIC, Development of Tourism Thailand, General Statistics Office Vietnam,
Tourism Malaysia.
4 Guide to the Markets – Asia. Data reflect most recently available as of 31/12/22.
China: Economic snapshot GTM ASIA 5
Contribution to real GDP growth Caixin/Markit Purchasing Managers’ Indices

Regional economy
Year-over-year change Index

28% 65
Contribution to year-over-year change 4Q21 1Q22 2Q22 3Q22 11/2022: 46.7
Gross capital formation 12/2022: 49.0
24% -0.5 1.3 0.3 0.8
(investment) (ppts) 60
Consumption (ppts) 3.4 3.3 -0.8 2.0
20% Net exports (ppts) 1.1 0.2 1.0 1.1
55
Total GDP (% change, year-over-
4.0 4.8 0.4 3.9
year)
16%
50
12% YTD '22: 3.0%
45
8%
40
4%
35
0%
-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' 22'
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.
Total gross domestic product (GDP) figures may not sum due to rounding. 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: Mobility and vaccination rates GTM ASIA 6
China major cities subway passenger flow Vaccination rates among Chinese population
Regional economy
Index, 2019 average as 100, 7-day moving average

140 Aged below 60 Aged 60 and above Aged 80 and above
100%
120 90%
80%
100
70%
80 60%
50%
60
40%
40 30%
20%
20 Lockdowns
in Shanghai 10%
and other
cities
0 0%
Jan '20 Jul '20 Jan '21 Jul '21 Jan '22 Jul '22 2 shots 3 shots 2 shots 3 shots 2 shots 3 shots
Shenzhen Beijing Shanghai Jul ‘22 Dec ‘22
Source: J.P. Morgan Asset Management; (Left) Local subway companies, Wind; (Right) National Health Commission of China.
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% 50% 130
30% 40%
120
20% 30%
110
10% 20%
0% 10%
100
-10% 0%
90
-20% -10%
-30% -20% 80
'11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '16 '17 '18 '19 '20 '21 '22
Retail sales
Aggregate Private State-owned enterprises Consumer confidence
Online sales
Source: CEIC, National Bureau of Statistics of China, J.P. Morgan Asset Management.
China: Property sector GTM ASIA 8
China residential property price and volume Source of fundings for property developers
Regional economy
Year-over-year change Trillion RMB

60% 25 YTD proportion of
total funding
Domestic loans 12%
50%
Self-raised funds 36%
Deposit and advanced payments 33%
0.61
40% 20 Personal mortgage loans 16%
0.65
Others 4%
0.66
30% 3.2
0.70 3.0
YTD
0.02 2.7
20% 15 2.4
0.01 0.50
2.4
10% 0.05 0.06 0.03 2.4 6.7 7.4
2.2
6.1
1.4 1.4 1.7 5.6
0% 10 0.04 4.9
4.2
0.08 1.1 3.4 3.0 3.3 4.5
-10% 0.8
2.7
2.2 6.3 6.5
5.6 5.8
-20% 5 5.0
5.1
4.7 4.9 4.9
4.9
3.9
3.5
-30%
2.1 2.0 2.2 2.5 2.4 2.5 2.7 2.3
1.3 1.5 2.0 1.6
-40% 0
'11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
Residential property price Housing volume*

(3-month moving average)
Source: National Bureau of Statistics of China, J.P. Morgan Asset Management; (Left) CEIC; (Right) Wind.
*Housing volume is the sum of the floor space of residential buildings sold, residential buildings newly started, residential buildings completed and land area purchased.
Domestic loans refers to loans borrowed from banks. Self-raised funds include developers’ internal funds, funds raised from bond issuance, equity issuance and accounts
payable to construction contractors and other relevant parties. Personal mortgage loans are mortgage loans that home buyers borrow from banks and public housing
funds. Proportion of total funding percentages may not sum to 100% due to rounding.
China: Fiscal policy GTM ASIA 9
Fiscal revenue and expenditure* Pace of central and local government bond issuance
Regional economy
Year-over-year change, 3-month moving average Year-to-date (YTD) issuance as % of full-year quota
30% 100%
Total quota
20% % of quota filled
(RMB trillion)
90%
2020 8.5 98%
10% 2021 7.2 97%
80% YTD 2022*** 7.0 98%
0%
-10%
70%
-20%
60%
-30%
'14 '15 '16 '17 '18 '19 '20 '21 '22
Revenue Expenditure 50%
Fiscal balance
40%
% of nominal GDP
0%
-2% 30%
-4%
-6%
20%
-8%
-10%
-12% 10%
-14%
-16% 0%
'10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Budget deficit Actual deficit** Augmented deficit
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. **Actual deficit = fiscal revenues – fiscal expenditures. Budget
deficit = actual deficit adjusted with the fiscal stability fund. Augmented deficit is an estimate of all the fiscal resources used by the government to support economic growth,
i.e. fiscal balance plus investment via local government financing vehicles, policy banks and other channels. *** Year-to-date 2022 data refers to the period 01/01/22 to
30/11/22.
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%
20%
25
15% 6.0%
10% 15
5% 4.5%
5
0%
-5
-5% 3.0%
-10% -15
-15% 1.5%
-25
-20%
-25% -35 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 '22
Global composite PMI - new orders Loan prime rate (1-year)** Loan prime rate (5-year)
Credit impulse*
(lagged 6 months) Medium-term lending facility (1-year) Interbank repo (7-day)
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. **Previously, the 1-year lending rate was a key interest rate. 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

108 28/09/22: 5.5
Risk reserve ratio for
06/08/18: forward sales of CNY 5.7
106 Stronger CNY raised to 20% from 0%
Risk reserve ratio
for forward sales of
CNY raised to 20% 15/09/22: 5.9
104 11/08/15:
Market reform to from 0% Reserve ratio on foreign
mechanism of exchange deposit cut to 6.1
102 CNY exchange 11/12/15: 6% from 8%
rate Launch of the CFETS
index 6.3
100
6.5
12/10/20:
98 Risk reserve ratio for
forward sales of CNY 6.7
cut to 0% from 20%
96
6.9
15/05/22: Reserve
Weaker CNY ratio on foreign
94 exchange deposit cut 7.1
to 8% from 9%
92 26/05/17: 7.3
Introduction of counter-cyclical factors to stabilize daily 27/10/20: Suspension of
central parity counter-cyclical factor
90 7.5
15' 16' 17' 18' 19' 20' 21' 22'
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 and inflation forecasts GTM ASIA 12
Annual real GDP growth Headline consumer price inflation

Year-over-year change
9% 12%
Forecast* Forecast**
8%
7%
Global economy
10%
6%
5%
8%
4%
3%
2% 6%
1%
0% 4%
-1%
-2%
2%
-3%
-4%
0%
-5%
-6%
-7% -2%
2019 2020 2021 2022 2023 2018 2019 2020 2021 2022 2023 2024
U.S. Eurozone Emerging Asia Japan
U.S. Eurozone Emerging Asia Japan
Forecasts made on 31/12/21
Source: FactSet, J.P. Morgan Economic Research, J.P. Morgan Asset Management. *Real GDP growth forecasts are based on growth forecasts estimated by J.P. Morgan
Economic Research. **Inflation forecasts are based on consumer price inflation forecasts estimated by J.P. Morgan Economic Research. Diamonds in the left-hand-side
chart represent the real GDP forecasts made on 31/12/21 published by J.P. Morgan Economic Research. Columns and dotted lines in the forecast area indicate the most
recent forecasts published by J.P. Morgan Economic Research.
Global Purchasing Managers’ Index (PMI) GTM ASIA 13
Global manufacturing and services PMI Global manufacturing PMI breakdown

Index
65
Aug '22
May '22
Nov '22
Feb '22
Jun '22
Sep '22
Dec '22
Apr '22
Jan '22
Mar '22
Oct '22
Jul '22
Global 48.8 48.6
Global economy
60 DM* 47.8 47.3

EM** 49.7 49.8
U.S. (Markit) 47.7 46.2
U.S. (ISM) 49.0 -
55 Eurozone 47.1 47.8
Germ any 46.2 47.1
France 48.3 49.2
50 Italy 48.4 48.5

Spain 45.7 46.4
UK 46.5 45.3
Australia 51.3 50.2
45 Japan 49.0 48.9
China (Markit) 49.4 49.0
China (NBS) 48.0 47.0
Korea 49.0 48.2
40
Taiw an 41.6 44.6
Indonesia 50.3 50.9
India 55.7 57.8
35 Russia 53.2 53.0
'99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21 Brazil 44.3 44.2
Mexico 50.6 -
Manufacturing Services
Source: Institute for Supply Management, J.P. Morgan Economic Research, Markit, S&P Global, 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.
Globalization GTM ASIA 14
International trade Foreign direct investments

USD trillions Net inflows as percentage of GDP
4.5 35 6%
4.0 5%
Global economy
30
3.5 4%
25
3%
3.0
20 2%
2.5
1%
2.0
15
0%
1.5
10 -1%
1.0
-2%
5
0.5
-3%
0.0 0
'05 '07 '09 '11 '13 '15 '17 '19 '21
Services trade value Goods trade value 2016 2017 2018 2019 2020 2021
Source: J.P. Morgan Asset Management; (Left) UNCTAD; (Right) World Bank.
Global supply chains GTM ASIA 15
Supply chain issues
Dissipating supply chain disruption Heightened supply chain disruption

Global economy
May '20
Aug '20
Nov '20
Dec '20
May '21
Aug '21
Nov '21
Dec '21
May '22
Aug '22
Nov '22
Mar '20
Apr '20
Sep '20
Feb '21
Mar '21
Apr '21
Sep '21
Feb '22
Mar '22
Apr '22
Sep '22
Jun '20
Oct '20
Jan '21
Jun '21
Oct '21
Jan '22
Jun '22
Oct '22
Jul '20
Jul '21
Jul '22
Supply chain pressure index
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. Supply chain pressure index: New York Fed Global Supply Chain Pressure Index. Global shipping costs: Drewry World Container Index. 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 30/09/22. 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 16
Headline consumer prices

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

Legend
Global economy
Oct Nov
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 '22
'22 '22
U.S. 7.8% 7.1%

Developed Markets
UK 11.1% 10.7%
Eurozone 10.6% 10.1%
Japan 3.8% 3.8%
Australia 5.2% 5.9%
China 2.1% 1.6%
India 6.8% 5.9%
Korea 5.7% 5.0%

EM Asia
Taiwan 3.0% 2.5%
Indonesia 5.7% 5.4%
Malaysia 4.0% 4.0%
Thailand 6.0% 5.5%
Brazil 6.5% 5.9%

Other EM
Mexico 8.4% 7.8%
Turkey 85.5% 84.4%
South Africa 7.6% 7.4%
Source: Department of Statistics Malaysia, DGBAS, Eurostat, FactSet, 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. Seasonally adjusted quarterly averages, with the exception of the two most recent figures, which are seasonally adjusted 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 inflation components GTM ASIA 17
Global core inflation Global food and energy prices*

Year-over-year change Year-over-year change
6% 300%
250%
Global economy
5%
200%
4%
150%
3% 100%
50%
2%
0%
1%
-50%
0% -100%
‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19 ‘20 ‘21 ‘22 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
Food Crude Oil (3-month moving average)
Source: FactSet, J.P. Morgan Asset Management.*Food prices are represented by the FAO Food Price Index and energy prices are represented by Brent crude oil global
spot price.
Global food and energy inflation GTM ASIA 18
Food and energy weights within CPI baskets Energy consumption by fuel
Share of CPI basket Share of total energy consumption
60%
UK
9 U.S.
Global economy
50% 12 9
Europe Consumes
9 more Oil and
40% 7 Natural Gas
Thailand
12 10
7 6 Malaysia
7
30% 9 11 3 Japan
9 4
14
46 5
13 Australia
20% 6 7
37 38 17 10
7
Indonesia
30 6
14
25 5
22 Philippines Consumes
10% 18 18
15 14 more Coal
10 11 9 Vietnam
7
0% China
India*
Indonesia
Vietnam
Hong Kong
Thailand
China**
EU
Taiwan
U.S.
Philippines
Malaysia
South Korea
Singapore
Australia
India
0% 20% 40% 60% 80% 100%

Food (ex-away from home) and non-alcoholic beverages
Coal Oil Natural Gas Others****
Food away from home Energy***
Source: J.P. Morgan Asset Management; (Left) Australian Bureau of Statistics, CEIC, FactSet; (Right) BP Statistical Review of World Energy. *India’s food away from
home consumer price index (CPI) is zero. **China NBS does not provide detailed CPI weights. ***Energy includes energy used by households and transportation.
****Others include nuclear energy, hydroelectric and other renewables.
Central bank inflation targets GTM ASIA 19
Inflation and central bank inflation targets

Year-over-year change
12%
10.7%
11% Inflation target range
10.1%
Global economy
10% Inflation target or midpoint
Current inflation
9%
8.0%
8%
7.1%
7%
6.1%
5.9%
6% 5.5% 5.5%
5.0%
5%
4.2%
3.8%
4%
3% 2.5%
2%
1% 1.6%
0%
China Taiwan Japan Malaysia** Korea Indonesia Thailand India Australia* U.S. Philippines Eurozone UK
Source: FactSet, J.P. Morgan Asset Management. *The inflation figure used for Australia is based on trimmed-mean consumer price index (CPI), which is the preferred
metric used by the Reserve Bank of Australia for its inflation target. **The inflation figure used for Malaysia is based on core CPI, which is the preferred metric used by the
Bank Negara Malaysia (The Central Bank of Malaysia) for its inflation target. Inflation figures for other listed economies are based on headline CPI, in accordance with their
preferred inflation target metric. Note that while the U.S. Federal Reserve officially targets 2% headline personal consumption expenditure (PCE) inflation, headline CPI is
used for U.S. inflation in this chart due to the timelier release of data.
Global central bank policy rate changes GTM ASIA 20
Changes in central bank policy rates Expected change in central bank policy rates
Number of hikes or cuts*
250 7%
200 6%
Rate hikes
Global economy
150 5%
100 4%
50 3%
0 2%
-50 1%
-100 0%
Rate cuts
-150 -1%
-200
'08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
Interest rate at start of 2022 Forecast interest rate at 2Q23
/ Developed markets / Emerging markets
Current interest rate
Source: Bank of International Settlements, J.P. Morgan Asset Management; (Right) CEIC, J.P. Morgan Economic Research.
*Count covers the 38 central banks included in the Bank for International Settlements’ central bank policy monitor except Argentina, Croatia and Hong Kong.
G4 central bank policy rates and market expectations GTM ASIA 21
G4 central bank key policy rates Market expectations* for central bank policy rates
Per annum Expected rate by 31/03/23
5.0% 7.0%
6.0%
Global economy
4.0%
5.0%
3.0%
4.0%
2.0% 3.0%
2.0%
1.0%
1.0%
0.0%
0.0%
-1.0% -1.0%
'10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 Dec '21 Feb '22 Apr '22 Jun '22 Aug '22 Oct '22 Dec '22
U.S. Federal Reserve Bank of England European Central Bank
U.S. UK Eurozone Japan
Bank of Japan
Source: J.P. Morgan Asset Management; (Left) FactSet; (Right) Bank of England, Bloomberg L.P., Federal Reserve. *Expectations are derived from the World Interest
Rate Probability (WIRP) estimated forward rates. Past performance is not a reliable indicator of current and future results.
United States: Economic growth and the contribution to GDP GTM ASIA 22
Real GDP Component contribution to GDP

Year-over-year change Basis points
14% 20
Real GDP 3Q22 Contribution 3Q22
12% Year-over-year change: 1.9% Consumption 1.18
15
Global economy
Investment -1.71
Quarter-over-quarter SAAR* change: 3.2%
10% Government 0.53
10 Net Exports 2.93
50-year average: 2.7%
8%
10-year average:
2.1% 5
6%
4% 0
2%
-5
0%
-10
-2%
-15
-4%
-6% -20
'72 '77 '82 '87 '92 '97 '02 '07 '12 '17 '22 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep
'19 '19 '19 '19 '20 '20 '20 '20 '21 '21 '21 '21 '22 '22 '22
Source: Bureau of Economic Analysis, FactSet, J.P. Morgan Asset Management.

Real GDP growth reached a low of -29.9% year-over-year during 2Q20 and a high of 35.3% year-over-year during 3Q20.
*SAAR stands for seasonally adjusted annualized rate.
United States: Economic monitor GTM ASIA 23
U.S. economic indicators

Percentile rank relative to historic data since 1990
Broad indicators Consumer and services Manufacturing Labor market Key:
Elevated
recession risk
Global economy
100
90 Lower
recession
80 risk
70
6 months
60 prior
50
Latest
40
30
20
10 Higher
recession
risk
0
Conference Conference Consumer ISM non- ISM Non-farm payrolls
Board Leading Board Leading Confidence Index manufacturing manufacturing:
Economic Index Credit Index New orders
Source: Conference Board U.S., FactSet, Institute for Supply Management, U.S. Department of Labor, J.P. Morgan Asset Management. Elevated recession risk flags are
shown when the underlying indicator is at a level consistent with the onset of any of the three recessions prior to the COVID-19 recession. Transformations used for each
of the indicators are % year-over-year change for the Leading Economic Index and Consumer Confidence Index, index level for Leading Credit Index, ISM non-
manufacturing and ISM manufacturing new orders and three-month moving average of monthly absolute change for non-farm payrolls. Past performance is not a reliable
indicator of current and future results.
United States: Consumption and investments GTM ASIA 24
Real wage growth* and personal consumption expenditure Investments and future CAPEX*** intentions
Year-over-year change, 3-month moving average Year-over-year change Net percentage of respondents
5% 10% 20% 50%
15%
4% 8%
Global economy
40%
10%
3% 6%
30%
5%
2% 4%
20%
0%
1% 2%
-5%
10%
0% 0%
-10%
0%
-1% -2%
-15%
-10%
-2% -4% -20%
-3% -6% -25% -20%

'00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22
Empire State future capital
Real personal consumption
Real wage growth* Business fixed investment expenditure survey**** (3-month
expenditure**
moving average)
Source: U.S. Bureau of Economic Analysis, J.P. Morgan Asset Management; (Left) Federal Reserve Bank of Atlanta, U.S. Department of Labor; (Right) Federal Reserve
Bank of New York. *Real wage growth is calculated by taking the year-over-year change in Atlanta Fed Hourly Wage Growth Tracker adjusted using the U.S. Consumer
Price Index. **Axis cut off to maintain reasonable scale. ***CAPEX refers to capital expenditure. ****Future capital expenditure intention is the difference between the
percentage of businesses looking to increase capital expenditure vs the percentage of businesses looking to decrease capital expenditure over the next 6 months.
United States: Employment and wages GTM ASIA 25
Unemployment rate and average hourly earnings* Labor market supply and demand
Percent of labor force, year-over-year change, seasonally adjusted
16% 2.2 68%
10/2022:
2.0 1.7 jobs per
14% unemployed
Global economy
person 66%
1.8
12%
1.6
Recessions
64%
10% 1.4
11/2022: 3.7%
1.2
8% 11/2022: 5.8%
62%
1.0
6%
0.8
60%
4% 0.6
0.4 58%
2%
0.2
0% 0.0 56%
'85 '90 '95 '00 '05 '10 '15 '20
'00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20
Unemployment rate Average hourly earnings JOLTS** job openings Civilian labor force
per unemployed person participation rate
Source: J.P. Morgan Asset Management; (Left) FactSet, U.S. Bureau of Labor Statistics; (Right) Conference Board of U.S., U.S. Department of Labor.
*Average hourly earnings are calculated from the wages of production and non-supervisory workers. **JOLTS stands for Job Openings and Labor Turnover Survey.
United States: Housing market GTM ASIA 26
Mortgage rate and housing starts Distribution of mortgage rates

Per annum Year-over-year change, 6-month moving average Percentage of total outstanding value of residential mortgages, as of 3Q22
2% 60% 45%
40%
40%
Global economy
40%
4% Recessions 35%
20% 30%
6%
25% 24%
0% 21%
20%
8%
-20% 15%
10% 9%
10% 7%
-40%
5%
12% -60% 0%
'90 '95 '00 '05 '10 '15 '20 Less Than or Between 3% Between and Between 5% Greater Than
30-year fixed rate Privately owned Equal to 3% and 4% 4% to 5% and 6% 6%
mortgage (inverted) housing starts
Source: J.P. Morgan Asset Management; (Left) FactSet, Freddie Mac, U.S. Census Bureau; (Right) Federal Housing Finance Agency, National Mortgage Database.
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
8% 10%
9%
7%
Global economy
8%
6%
7%
5%
6%
4% 5%
3% 4%
3%
2%
2%
1%
1%
0%
0%
-1% -1%
Aug '21
Sep '21
Nov '21
Dec '21
Aug '22
Sep '22
Nov '22
Jan '21
Jun '21
Jan '22
Jun '22
May '21
May '22
Feb '21
Mar '21
Jul '21
Jul '22
Apr '21
Oct '21
Feb '22
Mar '22
Apr '22
Oct '22
-2%
91' 93' 95' 97' 99' 01' 03' 05' 07' 09' 11' 13' 15' 17' 19' 21'
Core PCE inflation Headline PCE inflation Core goods Core services ex-shelter Shelter
Fed’s 2% headline PCE target Food Energy
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.
United States: Monetary policy GTM ASIA 28
Federal funds rate expectations

Market expectations for the fed funds rate
7%
FOMC December 2022 forecasts
Percent
Long
Global economy
2022 2023 2024 2025

6% run
Change in real GDP, 4Q to 4Q 0.5 0.5 1.6 1.8 1.8
5% Unemployment rate, 4Q 3.7 4.6 4.6 4.5 4.0

PCE inflation, 4Q to 4Q 5.6 3.1 2.5 2.1 2.0
4%
3%
2.5%
2%
1%
0%
Long
'00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 '24 '26 run
Federal funds rate Market expectations on 31/12/22 FOMC year-end estimates FOMC long-run projection
Source: Bloomberg L.P., FactSet, U.S. Federal Reserve, J.P. Morgan Asset Management.
Market expectations are derived from market implied policy rates as of 31/12/22. Federal Reserve projections shown are the median estimates of Federal Open Market
Committee (FOMC) participants.
United States: Federal Reserve balance sheet GTM ASIA 29
The Federal Reserve balance sheet

USD trillions
10
Balance sheet expansion under rounds of quantitative easing (QE), USD billions
Announced Terminated Length (m) Treasuries MBS** Loans*** Balance sheet Forecast*
9
QE1 25/11/08 31/03/10 16 300 1,074 0 1,403
Global economy
QE2 03/11/10 29/06/12 19 829 -196 0 568

8
QE3 13/09/12 29/10/14 25 822 874 0 1,674
QE4 23/03/20 15/03/22 24 3,286 1,343 62 4,779
7 Loans
Other
4
3 MBS
Treasuries
1
0
'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '24 '25
Source: FactSet, Federal Reserve, J.P. Morgan Investment Bank, J.P. Morgan Asset Management.
At its peak, the balance sheet contained $5.7tn in Treasuries and $2.7tn in MBS. *The forecast assumes the Federal Reserve begins balance sheet runoff in mid-May and
gradually increases the monthly cap on maturing Treasury and MBS securities per meeting until a max cap of $100bn/month. The forecast does not include the active
selling of securities from the committee. **MBS stands for mortgage-backed-securities.***Loans include liquidity and credit extended through corporate credit facilities
established in March 2020. Other includes primary, secondary and seasonal loans, repurchase agreements, foreign currency reserves and maiden lane securities.
Forecasts are not a reliable indicator of future performance. Forecasts, projections 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 forecasts, projections or
other forward-looking statements, actual events, results or performance may differ materially from those reflected or contemplated.
Eurozone: Economic monitor GTM ASIA 30
Eurozone economic indicators

Percentile rank relative to historic data since 1999
Financial conditions Consumer and services Manufacturing Labour market
Key:
Elevated
recession risk
Global economy
100
90
Lower
80
recession risk
70
6 months
60 prior
50 Latest
40
30
20
10
Higher
recession risk
0
Bloomberg Consumer Services PMI: Manufacturing Unemployment
financial confidence Business PMI: New
conditions expectations orders
Source: Bloomberg L.P., European Commission, Eurostat, FactSet, S&P Global, J.P. Morgan Asset Management. Elevated recession risk flags are shown when the
underlying indicator is at a level consistent with eurozone recessions prior to the COVID-19 recession.
Eurozone: Energy supply and impact on consumers GTM ASIA 31
European Union gas inventories Electricity prices in Europe

Share of capacity Baseload electricity price, euro per Megawatt hour
100% 1200
Future pricing*
90%
Global economy
1000
80%
70% 800
60%
600
50%
40% 400
30%
200
20%
10% 0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan '20 Jul '20 Jan '21 Jul '21 Jan '22 Jul '22 Jan '23 Jul '23 Jan '24 Jul '24 Jan '25
Average of 10-years prior to 2021 Range prior to 2021
UK Eurozone**
2021 Year-to-date 2022
Source: FactSet, InterContinental Exchange, J.P. Morgan Asset Management.

*Forecast prices are based on electricity price futures provided by the Intercontinental Exchange. **Eurozone figures calculated as the average of the German, French,
Italian and Spanish period averages.
Global and Asia equity market returns GTM ASIA 32
10-yrs ('13 - '22)

2012 2013 2014 2015 2016 20170 8 2018 2019 2020 2021 2022 4Q '22 Ann. Ret. Ann. Vol.
India U.S. China A Japan Taiwan China U.S. Taiwan Korea U.S. ASEAN Europe U.S. China A
26.0% 32.4% 52.1% 9.9% 19.6% 54.3% -4.4% 37.7% 45.2% 28.7% -4.1% 19.4% 12.6% 24.6%
China Japan India China A U.S. Korea India China A Taiwan Taiwan India Korea Taiwan China
23.1% 27.3% 23.9% 2.4% 12.0% 47.8% -7.3% 37.2% 42.0% 26.8% -7.5% 18.5% 10.3% 22.6%
ASEAN Europe U.S. U.S. Korea India Taiwan U.S. China A India Europe China India Korea
22.8% 26.0% 13.7% 1.4% 9.2% 38.8% -8.2% 31.5% 38.4% 26.7% -14.5% 13.5% 7.6% 21.3%
APAC APAC APAC
Taiwan Taiwan Europe ASEAN Europe China Europe Japan Japan Japan India
Equities
ex-JP ex-JP ex-JP

22.6% 9.8% 10.1% -2.3% 7.1% 37.3% -8.4% 24.6% 29.7% 17.0% -16.3% 13.3% 5.9% 19.9%
APAC APAC APAC
Korea Korea China India ASEAN China A Japan China Japan China A Taiwan
ex-JP ex-JP ex-JP
21.5% 4.2% 8.3% -6.1% 6.2% 32.6% -12.6% 23.7% 22.8% 2.0% -17.2% 12.2% 5.5% 18.9%
APAC APAC
Europe China ASEAN Korea Japan ASEAN Japan U.S. ASEAN U.S. ASEAN Europe
ex-JP ex-JP
19.9% 4.0% 6.4% -6.3% 2.7% 30.1% -13.7% 20.1% 18.4% 0.2% -18.1% 9.9% 5.2% 16.3%
APAC APAC APAC APAC
Taiwan China China Taiwan Europe India China A China Taiwan Europe
ex-JP ex-JP ex-JP ex-JP
17.7% 3.7% 3.1% -7.6% 1.1% 28.5% -14.3% 19.5% 15.9% -1.0% -21.8% 9.7% 3.8% 16.1%
APAC APAC
U.S. China A Japan Europe Europe China Korea Japan China A U.S. China ASEAN
ex-JP ex-JP
16.0% -2.6% -3.7% -9.1% 0.2% 26.2% -18.7% 13.1% 14.9% -2.7% -26.5% 7.6% 2.6% 15.5%
China A India Europe Taiwan India Japan Korea ASEAN Europe Korea Korea China A Korea U.S.
10.9% -3.8% -5.7% -11.0% -1.4% 24.4% -20.5% 8.8% 5.9% -7.9% -28.9% 4.0% 1.9% 14.7%
Japan ASEAN Korea ASEAN China A U.S. China A India ASEAN China Taiwan India ASEAN Japan
8.4% -4.5% -10.7% -18.4% -15.2% 21.8% -27.6% 7.6% -6.2% -21.6% -29.1% 2.1% 0.3% 14.0%
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 31/12/12 – 31/12/22. Past performance is not a reliable indicator of current and future results.
Global equities: Return composition GTM ASIA 33
Sources of global equity returns*

Total return, USD
40%
2021 2022
28.7%
30%
17.0%
20%
Equities
10%
2.0%
0%
-2.2% -2.7%
-10%
-14.5%
-20% -16.3%
-17.2%
-18.1% -19.7%
-30%
-40%
U.S. Europe Japan EM Asia Pacific U.S. Europe Japan EM Asia Pacific
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 34
Earnings growth Earnings revisions ratios

Earnings per share, year-over-year change, consensus estimates Net earnings revisions to consensus estimates, 12-week moving average
70% 80%
60%
60% 60%
50%
50% 46% 40%
40% 20%
Equities
30%
30% 0%
20% -20%
14% 15%
10% 10%
10% 6% -40%
6% 5%
4%
0% -60%
0% 0%
-10% -8% -80%

-11%
-20% -100%
U.S. Asia Pacific ex- EM Europe '14 '15 '16 '17 '18 '19 '20 '21 '22
Japan
2021 2022 2023 2024 U.S. Europe Asia Pacific ex-Japan Japan
Source: FactSet, MSCI, 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 FactSet.
Revisions are based on the current unreported year. Net earnings revisions is (number of companies with upward earnings revisions minus number of companies with
downward earnings revisions) divided by the number of total companies. Past performance is not a reliable indicator of current and future results.
Global equities: Valuations GTM ASIA 35
Equity market valuations – Price-to-earnings

Forward P/E ratios
30.9 41.3 15-yr. range
30x 35.8
15-yr. average
Latest
21.9
20x
16.7 18.2
12.5 14.6 14.9
14.3 13.3
13.0 12.1 12.2 13.6 13.1 12.4
10x 11.7 11.2
10.8
Equities
0x
S&P 500 Europe Asia Pac Emerging ASEAN China A China Hong India Indonesia Japan Korea Malaysia Philippines Singapore Taiwan Thailand
ex-UK ex-Japan markets Kong
Equity market valuations – Price-to-book

Trailing P/B ratios
6.7 5.2 5.2 15-yr. range
5x
15-yr. average
Latest
4x
3.8
3.6
3x
2.5
2x
1.8 1.8 2.0 2.0
1.8 1.6 1.6 1.7 1.4 1.4 1.3
1x 1.1 1.2
0.9
0x
S&P 500 Europe Asia Pac Emerging ASEAN China A China Hong India Indonesia Japan Korea Malaysia Philippines Singapore Taiwan Thailand
ex-UK ex-Japan markets Kong
Source: 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* Trailing 12-months earnings per share

MSCI World growth / value fwd. P/E ratio, # of std. dev.** over / under average Indexed, 31/12/04 = 100
4 300
3
250
Growth expensive
relative to value
2
200
Equities
150
100
-1
50
-2
Growth cheap
relative to value
-3 0
'05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '23
MSCI World Growth MSCI World MSCI World Value
Source: J.P. Morgan Asset Management; (Left) FactSet, MSCI; (Right) Bloomberg L.P.
*Growth is the MSCI World Growth index and value is the MSCI World Value index. **Std. dev. is standard deviation, which is a measure of dispersion relative to the mean.
Past performance is not a reliable indicator of current and future results.
Guide to the Markets – Asia. Data reflect most recently available as of 31/12/22.
36
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
50% 40.3%
40%
29.0%
30% 22.0% 22.9%
19.3%
20% 13.4% 14.8% 15.5%
10.6% 8.8%12.0% 10.6%
10% 4.1% 3.7% 4.0%
0%
-10% -1.0% -0.6% -2.7% -4.5%
-7.8%
-20% -15.6%
-16.6%
-13.3% -13.3%
-30%
Equities
Korea Taiwan Australia Indonesia Asia Pacific Malaysia Thailand China Philippines India Singapore Hong Kong
ex-Japan
2022 2023
Earnings growth by sector

Earnings per share, year-over-year change, consensus estimates
33.1% 32.0% 219.0%
40% 24.9%
16.4% 15.5% 18.2%
20% 5.9% 9.6% 10.1%
0%
-0.8% -2.2% -5.3%
-20% -6.5% -5.6%
-16.7% -19.8%
-23.2% -26.2% -23.6%
-40%
-60% -45.3%
-63.1%
-80%
Industrials Information Materials Energy Real estate Consumer Financials Health care Communication Consumer Utilities*
technology staples services discretionary
2022 2023
Source: FactSet, MSCI, J.P. Morgan Asset Management. Consensus estimates used are calendar year estimates from FactSet. (Top) Equity indices used are the
respective MSCI indices. (Bottom) Sector indices used are from the MSCI AC Asia Pacific ex-Japan Index. Past performance is not a reliable indicator of current and future
results. *The utilities sector earnings is expected to increase by 219% in 2023.
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 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. *Price-to-book ratio used here is trailing 12-months price-to-book ratio.
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: Performance and earnings GTM ASIA 39
APAC ex-JP vs. DM PMI and equity performance APAC ex-JP components of earnings growth
Blended PMI* differential Index level Contribution to year-over-year change
10 120 80%
APAC ex-JP growth &
equity outperformance
60%
5 100 40%
Equities
20%
0 80 0%
-20%
-5 60 -40%
APAC ex-JP growth & equity -60%

underperformance
-10 40 -80%
'06 '08 '10 '12 '14 '16 '18 '20 '22 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21
APAC ex-JP minus DM MSCI APAC ex-JP / Revenue contribution to earnings growth
blended PMI MSCI World (DM) Margin contribution to earnings growth
Source: J.P. Morgan Asset Management; (Left) FactSet, Haver, J.P. Morgan Economic Research; (Right) Bloomberg L.P.
DM = Developed markets. *Blended PMI is weighted average PMI based on the respective equity indices’ geographical revenues. APAC ex-JP blended PMI weightings
based on MSCI APAC ex-Japan Index geographical revenues. DM blended PMI weightings based on MSCI World Index geographical revenues. Past performance is not a
reliable indicator of current and future results.
APAC ex-Japan equities: Earnings trend by revenue source
and exports GTM ASIA 40
Domestic vs. export-oriented Asian companies* Growth in nominal exports and earnings per share
MSCI AC Asia Pacific ex-Japan, earnings per share, Jan. 2010 = 100 USD, year-over-year change
450 80%
400
60%
350
40%
300
Equities
250 20%
200
0%
150
-20%
100
More than 95% of revenue derived domestically -40%

50
Between 70% and 95% of revenue derived domestically MSCI APAC ex-JP earnings per share
Less than 70% of revenue derived domestically EM Asia ex-China exports**
0 -60%
'10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21
Source: J.P. Morgan Asset Management; (Left) FactSet, MSCI; (Right) CEIC, national statistics agencies.
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 (29/01/10 – 31/12/22), 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 29/01/10. **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
40 results. Guide to the Markets – Asia. Data reflect most recently available as of 31/12/22.
APAC ex-Japan equities: Exposure to the U.S. and Europe GTM ASIA 41
Asian economies’ export exposure to U.S. and European Union

Value of exports to U.S. and European Union as a share of nominal GDP, USD
40%
35%
30%
25%
20%
15%
10%
5%
Equities
0%
Vietnam Singapore Malaysia Thailand Korea Philippines India Japan Indonesia New Zealand Australia China
2001 2008 2021
Geographic revenue exposure

Revenue exposure of MSCI indices
100%
80%
60%
40%
20%
0%
Indonesia China Philippines Thailand New Zealand India Malaysia Japan Australia Singapore Hong Kong Korea Taiwan
Local domestic Elsewhere in Asia Africa and Middle East Americas Europe
Source: FactSet, J.P. Morgan Asset Management; (Top) IMF Direction of Trade Statistics, Oxford Economics; (Bottom) MSCI.
APAC ex-Japan equities: Dividends GTM ASIA 42
APAC ex-JP earnings and dividends growth estimates Number of companies yielding greater than 4% by region
Year-over-year change Constituents of MSCI AC World Index
70% 300
60%
50% 250 243
40%
30% 200
Equities
20%
10% 150 138
0%
-10% 100 92
71
-20%
-30% 50 42
-40%
-50% 0
'03 '05 '07 '09 '11 '13 '15 '17 '19 '21 '23 Asia Pac. ex- Europe EM ex-Asia U.S. Japan
Japan
MSCI APAC ex-JP earnings per share
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.
China: Sector earnings and valuations GTM ASIA 43
MSCI China earnings growth estimates* MSCI China price-to-earnings

Earnings per share, year-over-year change, consensus estimates Forward P/E ratios
50% 70x
40%
15-yr. range
60x 15-yr. average
30%
Latest
20%
50x
10%
0%
Equities
40x
-10%
-20% 30x
-30%
20x
-40%
-50%
10x
Comm. Services
Cons. Discr.
Utilities
MSCI China
Industrials
Tech.
Cons. Staples
Energy
Materials
Health Care
Real Estate
Financials
0x
Sector
Weight 5.6 2.5 3.5 15.8 5.7 100.0 3.5 5.8 18.6 2.6 30.3 6.2
(%)
2022 2023
Source: FactSet, MSCI, J.P. Morgan Asset Management. Tech refers to Technology; Cons. Staples refers Consumer Staples; Comm. Services refers to Communication
Services; Cons. Discr. refers to Consumer Discretionary. *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.
Europe: Sector earnings and valuations GTM ASIA 44
MSCI Europe earnings growth estimates MSCI Europe price-to-earnings

60% 35x
50% 15-yr. range

30x 15-yr. average
40% Latest
30%
25x
20%
Equities
10% 20x
0%
-10% 15x
-20%
10x
-30%
-40%
5x
Cons. Discr.
Comm. Services
Utilities
MSCI Europe
Industrials
Cons. Staples
Tech.
Materials
Energy
Health Care
Real Estate
Financials
0x
Sector
Weight 7.4 6.6 14.3 10.2 0.9 100.0 3.3 16.1 13.1 4.4 16.8 6.9
(%)
2022 2023
Source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management. Tech refers to Technology; Cons. Staples refers Consumer Staples; Comm. Services refers to
Communication Services; Cons. Discr. refers to Consumer Discretionary.
*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 45
S&P 500 earnings growth estimates S&P 500 price-to-earnings

50% 60x
15-yr. range
40% 15-yr. average
50x Latest
30%
40x
20%
Equities
10%
30x
0%
20x
-10%
-20% 10x
S&P 500
Comm. Services
Cons. Discr.
Utilities
Energy*
Industrials
Cons. Staples
Tech.
Materials
Health Care
Real Estate
Financials
0x
Sector
Weight 5.2 2.7 15.8 2.7 7.2 25.7 100.0 3.2 7.3 11.7 8.7 9.8
(%)
2022 2023
Source: FactSet, Standard & Poor’s, J.P. Morgan Asset Management. Tech refers to Technology; Cons. Staples refers Consumer Staples; Comm. Services refers to
Communication Services; Cons. Discr. refers to Consumer Discretionary.
*The energy sector earnings are expected to increase by 157% in 2022.
**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 46
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 2022* Avg. '01-21
Margin -14.3% 5.1%
80% Revenue 9.3% 3.8%
Share Count 1.1% 0.2% 70%
Total EPS -3.9% 9.1%
60%
47%
Equities
40%
24% 22%
19% 19% 17% 2022*
20% 13% 15% 15% 15%
11%
5% 6% 4%
0%
0%
-6% -4%
-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 '22
Source: Compustat, FactSet, Standard & Poor’s, J.P. Morgan Asset Management.
EPS levels are based on annual operating earnings per share. *2022 earnings figures are based on weekly operating earnings estimates from Standard & Poor’s.
Percentages may not sum due to rounding. Past performance is not indicative of future returns.
United States: Earnings and rate hikes GTM ASIA 47
S&P 500 performance around the last rate hike in the cycle Drawdown in S&P 500 price and estimated earnings
S&P 500 indexed to 100 at date of last rate hike 100 = 1995
130 0%
-10%
120
-20%
Equities
110
-30%
100
-40%
90
-50%
Recessions
80 -60%
-252 -210 -168 -126 -84 -42 0 42 84 126 168 210 252 '95 '97 '99 '01 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21
Days
1984 1989 1995 2000 2006 2018 S&P 500 Earnings
Source: FactSet, Standard & Poor’s, U.S. Federal Reserve, J.P. Morgan Asset Management.
Past performance is not indicative of future results.
United States: Bull and bear markets GTM ASIA 48
S&P 500 Composite declines from all-time highs

0%
-20%
4 7 20% Market 12
-40% 5 8 Decline
6 11
9
-60% 10
3
-80% 2
1
Equities
-100%
1926 1931 1936 1941 1946 1951 1956 1961 1966 1971 1976 1981 1986 1991 1996 2001 2006 2011 2016 2021
Characteristics of bull and bear Bear markets* Macro environment Bull markets
Bear Bull
markets Mkt. Peak return
Duration P/E
Recession
Commodity Aggressive Extreme Bull begin
return
Duration P/E
(mths) trough spike Fed valuations date (mths) Peak
Market corrections (%) (%)
1 Crash of 1929 09/1929 -86 32 07/1926 152 37
2 1937 Fed tightening 03/1937 -60 61 03/1935 129 23
3 Post WWII crash 05/1946 -30 36 04/1942 158 49
4 Flash crash of 1962. Cuban Missile Crisis 12/1961 -28 6 10/1960 39 13
5 Tech crash of 1970 11/1968 -36 17 10/1962 103 73
6 Stagflation. OPEC oil embargo 01/1973 -48 20 05/1970 74 31
7 Volcker tightening 11/1980 -27 20 03/1978 62 32
8 1987 crash 08/1987 -34 3 9.6x 08/1982 229 60 15.2x
9 Tech bubble 03/2000 -49 30 13.8x 10/1990 417 113 24.7x
10 Global financial crisis 10/2007 -57 17 10.2x 10/2002 101 60 15.1x
11 Coronavirus pandemic 02/2020 -34 1 13.3x 03/2009 401 131 19.1x
12 Stagflation worries 01/2022 -25** Ongoing 15.2x*** 03/2020 114 21 24.1x
Averages**** - -44 23 - 169 57
Source: FactSet, NBER, Robert Shiller, Standard & Poor’s, J.P. Morgan Asset Management.*A bear market represents a 20% or more decline from the previous market
high using a monthly frequency. Periods of recession are defined using the NBER’s business cycle dates. Commodity spike is defined by a significant upward movement in
oil prices. Periods of extreme valuation are defined as periods where the forward P/E multiple on the S&P 500 were approximately two standard deviations above the long-
run average. Aggressive Fed tightening is defined as Federal Reserve monetary tightening that was unexpected and/or significant in magnitude. Peak and trough price-to-
earnings ratios quoted are next 12 months forward P/Es. **Most recently available bear return since the start of the Stagflation worries bear market. ***Most recently
available P/E trough since the start of the Stagflation worries bear market. ****Averages do not include ongoing bull or bear markets. Past performance is not a reliable
Global fixed income returns GTM ASIA 49
10-yrs ('13 - '22)

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 4Q '22 Ann. Ret. Ann. Vol.
Asia HY U.S. HY USD Asian Asia HY U.S. HY Local EMD Cash U.S. IG U.S. IG U.S. HY Cash Asia HY U.S. HY Local EMD
20.4% 7.4% 8.3% 5.2% 17.1% 15.4% 1.8% 14.5% 9.9% 5.3% 1.5% 11.3% 4.0% 11.6%
USD USD USD
Local EMD Asia HY U.S. IG USD Asian Local EMD U.S. MBS DM Gov't Cash Local EMD USD Asian Asia HY
EMD EMD EMD
19.9% 2.0% 7.5% 2.8% 11.4% 9.3% 1.0% 14.4% 9.7% 0.0% -8.7% 7.4% 2.3% 9.7%
USD U.S. U.S. USD
Cash Asia HY U.S. MBS Asia HY U.S. HY U.S. HY U.S. IG USD Asian Local EMD U.S. IG
EMD Treas Treas EMD
18.5% 0.0% 6.1% 1.5% 11.2% 7.5% 0.9% 14.3% 8.0% -1.0% -11.0% 5.0% 2.0% 8.6%
USD USD
U.S. HY USD Asian U.S. MBS Asia HY DM Gov't Local EMD U.S. HY U.S. MBS U.S. HY U.S. HY Asia HY U.S. HY
EMD EMD
15.8% -1.4% 6.1% 1.2% 10.2% 6.9% -0.7% 13.1% 7.1% -1.0% -11.2% 4.2% 1.6% 7.4%
USD U.S. USD USD
USD Asian U.S. MBS U.S. IG DM Gov't USD Asian Asia HY USD Asian U.S. MBS DM Gov't U.S. IG
EMD Treas EMD EMD
Fixed income
14.3% -1.4% 5.5% 0.8% 6.1% 6.8% -0.8% 12.8% 6.3% -1.5% -11.8% 3.7% 1.3% 6.2%
U.S. USD U.S. U.S.
U.S. IG U.S. IG Cash USD Asian U.S. IG U.S. HY USD Asian U.S. IG U.S. MBS DM Gov't
Treas EMD Treas Treas
9.8% -1.5% 5.1% 0.0% 5.8% 6.4% -2.1% 11.3% 5.9% -2.3% -12.5% 3.6% 0.7% 5.8%
U.S. U.S.
U.S. MBS U.S. HY U.S. IG U.S. MBS USD Asian U.S. IG Asia HY USD Asian Asia HY USD Asian Cash USD Asian
Treas Treas
2.6% -2.7% 2.5% -0.7% 1.7% 5.8% -2.5% 6.9% 4.9% -2.4% -15.1% 3.3% 0.7% 4.9%
U.S. U.S. U.S.
DM Gov't DM Gov't DM Gov't DM Gov't U.S. MBS Asia HY U.S. MBS U.S. MBS Local EMD U.S. IG U.S. MBS
Treas Treas Treas
2.0% -4.5% 0.7% -2.6% 1.6% 2.5% -3.2% 6.4% 3.9% -2.6% -15.8% 2.1% 0.6% 4.2%
U.S. U.S. USD USD
DM Gov't Local EMD Cash U.S. HY DM Gov't Cash DM Gov't Cash DM Gov't U.S. MBS
Treas Treas EMD EMD
1.3% -5.5% 0.0% -4.5% 1.0% 2.3% -4.6% 6.0% 0.5% -6.5% -16.5% 0.9% -1.0% 1.7%
USD U.S.
Cash Local EMD Local EMD Cash Cash Local EMD Cash Local EMD Asia HY DM Gov't Local EMD Cash
EMD Treas
0.1% -6.6% -6.1% -18.0% 0.3% 0.8% -6.7% 2.2% -1.2% -11.0% -17.3% 0.7% -1.4% 0.3%
Source: Bloomberg L.P., FactSet, J.P. Morgan Economic Research, J.P. Morgan Asset Management. Based on Bloomberg U.S. Aggregate Credit – Corporate High Yield
Index (U.S. HY), Bloomberg 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 U.S. Aggregate
Securitized - MBS (U.S. MBS), J.P. Morgan Government Bond Index – Global Traded (DM Government Bond), J.P. Morgan Asia Credit High Yield Index (Asia HY),
Bloomberg Global U.S. Treasury – Bills (3-5 years) (U.S. Treasury) and Bloomberg 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 31/12/12 to 31/12/22. Past performance is not a reliable
Global fixed income: Yields and duration GTM ASIA 50
Fixed income yields

Yield to maturity
15%
Developed market
Investment-grade bonds High yield bonds Asia & emerging market bonds
government bonds
13%
11%
9%
7%
5%
Fixed income
3%
1%
-1% Duration (years)
4.6 5.9 2.2 6.2 7.1 5.2 3.3 4.1 4.0 5.1 4.9 5.2 4.3 6.9
-3%
Japan Germany U.S. Europe U.S. U.S. Global U.S. Asia Europe U.S. Global Asia Local USD USD USD
10y 10y 10y IG MBS ABS IG IG IG HY HY HY HY EMD Asia China EMD
Credit Offshore
Yield to maturity on 31/12/21
Credit
Source: Bloomberg L.P., FactSet, ICE BofA Merrill Lynch, J.P. Morgan Economic Research, J.P. Morgan Asset Management. Based on Bloomberg U.S. Aggregate Credit
– Corporate Investment Grade Index (U.S. IG), Bloomberg Euro Aggregate Credit – Corporate (Europe IG), J.P. Morgan Asia Credit Investment Grade Index (Asia IG),
Bloomberg Global Aggregate – Corporate (Global IG), Bloomberg U.S. Aggregate Credit – Corporate High Yield Index (U.S. HY), Bloomberg U.S. Aggregate Securitized –
Asset Backed Securities (U.S. ABS), Bloomberg U.S. Aggregate Securitized – Mortgage Backed Securities (U.S. MBS), Bloomberg 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. Spread durations are shown for Asia IG,
Asia HY, USD EMD, USD Asia Credit and USD China Offshore credit. 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: Interest rate sensitivity GTM ASIA 51
Impact of a 1% rise or fall in interest rates

Total return, assumes a parallel shift in the yield curve
28%
1% fall
24% 23.2%
1% rise
20%
16% 15.2%
13.0% 12.9%
12.2%
11.4%
12% 10.5% 9.9% 10.0%
8.6%
8% 6.3%
5.1% 5.4% 5.5%
Fixed income
4% 2.5% 2.5%
1.3%
0%
-0.2% -0.7% -0.4%
-1.2% -1.1%
-4%
-3.8%
-8%
-12% -11.2%
-16%
U.S. IG U.S. MBS Local EMD USD EMD USD Asia U.S. HY U.S. 30y UST 10y UST TIPS 5y UST 2y UST
Credit Floating
Rate
Source: Barclays, Bloomberg L.P., FactSet, J.P. Morgan Economics Research, J.P. Morgan Asset Management. Based on Bloomberg Barclays U.S. Treasury Bellwethers
Index (2, 5, 10, 30-year U.S. Treasuries), Bloomberg Barclays U.S. Treasury Inflation-Protected Notes Index (TIPS), Bloomberg Barclays U.S. Floating Rate Notes Index
(U.S. Floating Rate), Bloomberg Barclays U.S. Aggregate Securitized – MBS Index (U.S. MBS), Bloomberg Barclays U.S. Aggregate Credit – Corporate – Investment
Grade Index (U.S. Investment Grade), Bloomberg Barclays U.S. Aggregate Credit – Corporate – High Yield Index (U.S. High Yield), J.P. Morgan Emerging Market Bond
Index Global (EMBIG) (USD EMD), J.P. Morgan Asia Credit Index (USD Asia Credit), J.P. Morgan Government Bond Index – EM Global (GBI-EM) (Local EMD). Past
51 Performance is not indicative of current or future results. Guide to the Markets – Asia. Data reflect most recently available as of 31/12/22.
Global fixed income: Return composition GTM ASIA 52
Debt return composition

Last 6 months
6%
3%
0%
Fixed income
-3%
-6%
USD Asia Local EMD USD DM USD EMD U.S. high yield USD EMD USD Asia USD China Local DM
high yield high yield corporates corporates offshore credit sovereigns
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 53
Spread to worst across fixed income sub-sectors

Basis points, last 10 years
1,400 1585
10-yr. range
1,200 Latest
10-yr. average
1,000
964
800
Fixed income
600 599
511 547
501
463
400 372
363
307 317
261 271 303
200 232
154
152 118
92
0
U.S. high U.S. Euro high Euro USD USD China USD Asia USD EMD USD 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). 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 54
10-year government bond yields Market-based inflation expectations

5-year 5-year inflation swap rate
16% 4%
Average
14% Latest
since 1970*
U.S. 6.1% 3.9% 3%
12% Germany 5.1% 2.5%
Japan 2.1% 0.4%
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 '22
U.S. Eurozone Japan
Source: J.P. Morgan Asset Management; (Left) FactSet, Tullett Prebon; (Right) Bloomberg 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 55
Yields and correlations of fixed income returns to equities

Yield, 10-year correlation between monthly total returns
14%
USD Asia HY
13%
Higher yields
12%
11%
10%
U.S. HY
9%
Latest yield to maturity
USD China offshore USD EMD

credit Europe HY
8%
USD Asia Credit
7%
USD EMD corporates
Local EMD
6% U.S. Floating Rate
Fixed income
U.S. MBS Local Asia U.S. IG

5% TIPS
2y UST 10y UST
UK (1-10y)
4%
U.S. Aggregate
3% Germany (1-10y)
2% France (1-10y)
1%
Japan (1-10y)
0%
-1%
-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* Stronger correlation
to equities
Government Credit Emerging Market Government & Credit
Source: Bloomberg L.P., FactSet, ICE BofA Merrill Lynch, J.P. Morgan Economics Research, MSCI, J.P. Morgan Asset Management.
Based on Bloomberg U.S. Treasury (UST) Bellwether 2y & 10y (2y & 10y UST), Bloomberg Treasury Inflation-Protected Securities (TIPS), ICE BofAML Country
Government (1-10y) (France, Germany, Japan & UK (1-10y)), Bloomberg U.S. Aggregate, Credit – Investment Grade & High Yield (U.S. Aggregate, IG & HY), Bloomberg
U.S. Floating Rate (U.S. Floating Rate), Bloomberg U.S. Aggregate Securitized – Mortgage-Backed Securities (U.S. MBS), Bloomberg 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. Past performance is not a reliable indicator of current and future results.
U.S. real yields GTM ASIA 56
Real 10-year and 2-year U.S. Treasury yields* U.S. 10-year Treasury yield breakdown**
6% 6%
5%
5%
4%
3% 4%
2%
3%
1%
0% 2%
Fixed income
-1%
1%
-2%
-3% 0%
-4%
Recessions -1%
-5%
-6% -2%
'90 '95 '00 '05 '10 '15 '20 '03 '05 '07 '09 '11 '13 '15 '17 '19 '21 '23
10-year Treasury 2-year Treasury 10-year nominal yield 10-year real yield
10-year inflation breakeven
Source: FactSet, Federal Reserve, J.P. Morgan Asset Management; (Right) Tullett Prebon.
*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 2022, where real yields are calculated by subtracting November 2022 year-over-year core inflation. **Real yield calculated using 10-year breakeven, which
represents the difference in yield between nominal and inflation-protected government bonds and is a market-based measure of average inflation expectations over the
next 10 years. 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 57
Corporate bond spread U.S. investment grade** credit curve

Basis points, option-adjusted spread over U.S. Treasury* Yield-to-maturity
700 6.5%
Average Latest 5.9% 5.9%
6.0% 5.8%
Investment grade 132bps 130bps 5.7%
600 5.6% 5.6%
5.4%
5.5% 5.3% 5.4%
5.3% 4.9%
5.0% 4.8%
500 5.1%
4.5%
4.5%
4.1%
Recessions
400
4.0%
Fixed income
3.5% 3.2%
300
3.0%
2.5%
200 2.5% 2.3%
1.9%
2.0%
100
1.4%
1.5%
0 1.0%
'90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22 3-year 5-year 7-year 10-year 30-year
Current 3 months ago 6 months ago 31/12/21
Source: Bloomberg L.P., FactSet, J.P. Morgan Asset Management. *Investment grade is Bloomberg U.S. Aggregate Credit – Corporate Investment Grade Index. **U.S.
investment grade is based on J.P. Morgan U.S. High Grade Index.
U.S. high yield bond spreads GTM ASIA 58
High yield spread and default rate*
20% 2,000
10-yr
Latest
average
Recessions HY spread to
503bps 511bps
worst
16% 1,600
HY energy spread
653bps 414bps
to worst
HY default rate 2.2% 0.8%
HY ex-energy
2.5%** 0.9%
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 31/12/22. U.S. corporate
high yield is represented by the J.P. Morgan Domestic High Yield Index.
U.S. high yield bond fundamentals GTM ASIA 59
Fallen angels and rising stars

Par amount, USD billions*
250 223
200
142 150
150
113 113
100 84
66 72
51 56 52 53 49 59
48
50 40 37 31 38 30 30 28 33
38 35 41 37 46 42 39
24 19 27 27 22 18 22 24
16 13 13 15 10 12
0
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 YTD
Fallen angels 2022
Rising stars
Fixed income
Recovery rates
Last 12 months (LTM), cents on the dollar recovered*
80
Long-term average:
70
41 cents / USD 59 56
60 55 55 53 53 57
51 53 50
49 49 48
50 45 46 44 47 46 43 46 43
42
35 39 32 36 38 34 40 36 41 31 40
40
30 27 23
30 26 25 25
22 22
20
10
0
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
LTM
Source: J.P. Morgan Economics Research, J.P. Morgan Asset Management; (Top) AMG Data services.
*Latest data is as of 30/11/2022.
Fallen angels are defined as bonds that were previously considered as investment grade but have been downgraded in rating to below investment grade. Rising stars are
bonds that were previously rated as below investment grade but have since been upgraded to or close to investment grade.
Recoveries are issuer-weighted and in 2009 were 22.4 based on prices 30-days post default and were 35.7 based on year-end prices.
U.S. securitized assets GTM ASIA 60
Spreads Mortgage originations by credit score*

Basis points, option-adjusted spreads USD trillions
350 5.0
4.5
300
4.0
250 3.5
3.0 YTD
200
2.5
Fixed income
150
2.0
1.5
100
1.0
50
0.5
0.0
0
'03 '04 '05 '06 '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 '22
Mortgage-backed securities Asset-backed securities
<620 620-659 660-719 720-759 760+
Commercial mortgage-backed securities
Source: J.P. Morgan Asset Management; (Left) Bloomberg L.P.; (Right) Equifax, New York Fed Consumer Credit. *Credit score is Equifax Riskscore 3.0. Credit scores
measure creditworthiness or likelihood of repayment of a borrower. The higher the score, the less risk of default.
Emerging market debt GTM ASIA 61
Spread between local rates and U.S. Treasuries EM debt hedging cost comparison
3-5 year local currency government bond index*, basis points Aggregate currency movement to be hedged against the U.S. dollar**
10%
1000
-200
200
400
600
800
S&P Moody's
0
8%
Thailand A- Baa1
China A+ A1 6%
Malaysia A A3 4%
Indonesia BBB Baa2 2%
Poland A A2 0%
Fixed income
India BBB- Baa3 -2%
S. Africa BB Ba2
-4%
Mexico BBB+ Baa2

-6%
Colombia BBB- Baa2

-8%
Brazil BB- Ba2
-10%
'03 '05 '07 '09 '11 '13 '15 '17 '19 '21
5-year average Current Unhedged yield Hedged yield
Source: Bloomberg 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 market. Spread is the difference between the yield on each market’s local 3-5 year
government bond, except for South Africa, which uses 1-5 year, and the yield on the Bloomberg U.S. Aggregate Government - Treasury (3-5 Year). S&P and Moody’s are
respective market’s local currency long-term debt ratings. **EM debt is represented by the J.P. Morgan GBI-EM Global Diversified Index. Hedging costs calculated using
the weighted average of currency hedge costs for all constituent countries in the index.
Asia fixed income GTM ASIA 62
JACI spread
Basis points over U.S. Treasury
1,600
10-yr average Latest
Non-investment grade 591bps 885bps
1,400
Non-investment grade
400bps 745bps
ex-China real estate
1,200 Investment grade 198bps 179bps
JACI 277bps 293bps
1,000
800
Fixed income
600
400
200
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.
Asset class returns GTM ASIA 63
10-yrs ('13 - '22)

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 4Q '22 Ann. Ret. Ann. Vol.
APAC DM Asian Asian EM ex- APAC DM APAC DM APAC DM EM ex-
Cash Cash
ex-JP Equities Bonds Bonds Asia ex-JP Equities ex-JP Equities ex-JP Equities Asia
22.6% 27.4% 8.3% 2.8% 25.2% 37.3% 1.8% 28.4% 22.8% 22.3% 1.5% 12.2% 9.4% 21.3%
Global Global Global EM ex- Asian APAC DM EM ex- Asian DM APAC
U.S. IG EMD Diversified
Corp HY Corp HY Corp HY Asia Bonds ex-JP Equities Asia Bonds Equities ex-JP
18.9% 8.4% 7.5% 1.2% 14.0% 24.7% -0.8% 19.5% 16.5% 8.1% -11.0% 9.9% 3.9% 16.3%
DM Global EM ex- Global APAC DM
EMD Diversified EMD Cash EMD Diversified Diversified EMD
Equities Bonds Asia Corp HY ex-JP Equities
18.5% 5.4% 5.5% 0.0% 10.2% 23.1% -1.2% 16.9% 11.2% 3.5% -12.7% 7.4% 3.8% 14.5%
DM APAC DM DM DM Global Global
Diversified U.S. IG Diversified U.S. IG Diversified Diversified Diversified
Equities ex-JP Equities Equities Equities Corp HY Corp HY
16.5% 3.7% 5.5% -0.3% 8.2% 17.2% -2.5% 16.4% 9.9% 2.0% -14.7% 7.3% 3.2% 9.1%
Global Global Global Global Asian
Diversified Cash Diversified U.S. IG Diversified U.S. IG Cash U.S. IG EMD
Corp HY Corp HY Bonds Corp HY Bonds
15.4% 0.0% 3.3% -0.7% 8.1% 10.3% -3.5% 14.5% 9.2% 0.0% -15.8% 6.8% 2.3% 8.6%
EM ex- Asian APAC Global APAC Global EM ex- EM ex- Global
EMD EMD EMD U.S. IG U.S. IG
Asia Bonds ex-JP Bonds ex-JP Corp HY Asia Asia Corp HY
14.8% -1.4% 3.1% -3.2% 7.1% 9.3% -4.6% 14.4% 8.2% -1.0% -16.0% 5.9% 2.0% 7.9%
Other asset classes
Asian Global Global Global Asian Global Global

U.S. IG Diversified U.S. IG Diversified EMD EMD U.S. IG
Bonds Bonds Bonds Corp HY Bonds Bonds Bonds
14.3% -1.5% 0.6% -3.4% 6.1% 7.4% -6.0% 13.4% 6.3% -1.5% -16.2% 4.5% 1.3% 6.2%
Global Global Global Asian DM Asian Asian Global
U.S. IG U.S. IG EMD EMD U.S. IG Cash
Bonds Corp HY Corp HY Bonds Equities Bonds Bonds Bonds
9.8% -2.6% 0.2% -4.9% 5.8% 6.4% -8.2% 11.3% 5.9% -2.4% -16.5% 3.6% 0.7% 5.5%
Global APAC Global Asian EM ex- Global APAC APAC Asian Global Asian
EMD Cash Cash
Bonds ex-JP Bonds Bonds Asia Bonds ex-JP ex-JP Bonds Bonds Bonds
4.3% -6.6% 0.0% -9.1% 2.1% 5.8% -11.5% 6.8% 0.5% -2.7% -17.2% 3.3% -0.4% 4.9%
EM ex- EM ex- EM ex- APAC EM ex- Global DM EM ex-
Cash Cash Cash Cash Cash Cash
Asia Asia Asia ex-JP Asia Bonds Equities Asia
0.1% -9.3% -13.3% -25.1% 0.3% 0.8% -13.7% 2.2% -9.7% -4.7% -17.7% 0.9% -2.4% 0.3%
Source: Bloomberg 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 Aggregate (Global Bonds), 10% in the Bloomberg Global Corporate
High Yield Index (Global Corporate High Yield), 15% in J.P. Morgan Asia Credit Index (Asian Bonds), 5% in Bloomberg U.S. Aggregate Credit – Corporate Investment
Grade Index (U.S. IG) and 5% in Bloomberg 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 31/12/12 – 31/12/22. 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.
Volatility GTM ASIA 64
VIX index*
12
90 6 0.9
80 0.8
70 Recession 0.7
60 3 7 8 0.6
4 5
50 1 2 9
10 11 0.5
10 13
40 0.4
30 Average: 19.6 0.3
20 0.2
10 0.1
0 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 '22
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 06/08/90 Recession – oil price shock and rate hikes -3.0% -4.2% -5.9% 16.8% 218
Other asset classes
2 30/10/97 Asian crisis -1.7% 7.5% 9.1% 21.6% 113

3 27/08/98 Long-Term Capital Management -3.8% 0.6% 13.8% 29.3% 309
4 17/09/01 Recession – collapse of dot-com bubble -4.9% 2.9% 9.2% -15.9% 172
5 15/07/02 Enron accounting scandal -0.4% 1.3% -8.3% 9.0% 304
6 17/09/08 Recession – global financial crisis -4.7% -14.8% -21.8% -7.9% 476
7 07/05/10 Greece bailout package, austerity imposed -1.5% -5.0% 1.0% 21.2% 157
8 08/08/11 European debt crisis, U.S. credit downgrade -6.7% 5.9% 12.7% 25.2% 165
9 24/08/15 Chinese yuan devaluation -3.9% 2.1% 10.2% 15.5% 44
10 05/02/18 Bond market re-pricing growth and rate hikes -4.1% 3.4% 0.9% 3.4% 9
11 24/12/18 Global growth and market liquidity fears -2.7% 12.4% 19.0% 37.1% 18
12 27/02/20 Recession – Coronavirus pandemic -4.4% -13.2% 1.7% 27.9% 383
13 07/03/22 Russia-Ukraine conflict and policy tightening -3.0% 7.1% -1.9% - 21
Median -3.8% 1.7% 5.4% 19.0%
Average -3.5% 0.5% 3.0% 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. Past
performance is not a reliable indicator of current and future results.
U.S. dollar GTM ASIA 65
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 '22
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 66
Currency deviation from 10-year average in real effective exchange rate* terms
Number of standard deviations away from average
5
4
FX above
long-term
3 average
2
Max
1 Current
-1
Other asset classes
Min
-2
FX below
long-term
-3
average
-4
-5
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 67
Current account positions, currency movements and reserve adequacy

Currency
appreciation
vs. USD
10%
Mexico
5% Brazil
Local currency vs. USD change, Last 12 months
0%
Vietnam Malaysia
Chile Thailand Poland China
-5%
South Africa Korea
-10%
Indonesia
-15% Philippines
India
-20% Colombia
-25%
Key: Asia EM ex-Asia
Turkey
Other asset classes
-30%
-35% Weaker position
-40%
= Adequate reserves*
-45% Argentina
-50% Stronger position
-55%
Currency -8% -6% -4% -2% 0% 2% 4% 6%
depreciation
Current account as % of GDP, 2021
vs. USD
Source: FactSet, International Monetary Fund, J.P. Morgan Asset Management.

*Adequate reserves are stocks of a market’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 68
Commodity prices Returns

Z-scores for the past five years, USD per unit
2018 - 2022
-4 -2 0 2 4 6 8 10 12 2018 2019 2020 2021 2022 4Q '22 Ann. Ret. Ann. Vol.
Euro M&M
Gold (E) M&M (E) Energy (E) Energy (E) M&M (E) Agri. (E) Gold (E)
Commodity Index $59 $137 (FI)
$113 -0.9% 51.1% 27.6% 44.3% 42.6% 23.6% 10.3% 32.0%

Iron Ore $63 $220 US M&M
M&M (E) Gold (E) Comdty. Comdty. Gold (E) M&M (E) Energy (E)
$111 (FI)
Aluminum $1,422 $3,985 -3.5% 17.1% 25.7% 27.1% 16.1% 20.9% 9.4% 29.6%
$2,361 Energy EM M&M

Agri. (E) Agri. (E) Agri. (E) Energy (E) Energy (E) M&M (E)
Henry Hub Gas $1 $24 (FI) (FI)
$4 -3.7% 16.5% 19.5% 23.1% 7.2% 17.0% 7.4% 29.4%
Dutch Natural Gas $4 $339 EM M&M US M&M EM M&M

M&M (E) M&M (E) Agri. (E) Comdty. Agri. (E)
$76 (FI) (FI) (FI)
Copper $4,618 $10,730 -4.1% 14.0% 10.6% 23.0% 3.8% 10.8% 6.4% 18.3%
$8,387 US M&M US M&M US M&M EM M&M
Agri. (E) Agri. (E) Gold (E) Comdty.
Oil $9 $9 $133 (FI) (FI) (FI) (FI)
$86 -8.9% 13.8% 8.5% 6.6% -6.5% 8.4% 5.4% 15.8%
Other asset classes
Gold $1,184 $2,069 Energy Energy EM M&M Euro M&M US M&M US M&M EM M&M
Comdty.
$1,826 (FI) (FI) (FI) (FI) (FI) (FI) (FI)
Wheat $4 $13 -11.2% 13.4% 6.0% 2.0% -13.5% 7.4% 3.5% 13.5%
$8 Euro M&M Energy Energy Energy Energy
Energy (E) Energy (E) Gold (E)
Agriculture $34 (FI) (FI) (FI) (FI) (FI)
$80
$69 -11.4% 9.5% 3.5% -0.7% -14.5% 5.0% -0.8% 11.5%
Coal $49 $458 Euro M&M Energy EM M&M US M&M

Gold (E) Comdty. Comdty. Comdty.
$404 (FI) (FI) (FI) (FI)
-13.0% 7.7% -3.1% -0.7% -16.5% 2.2% -1.2% 8.5%
Euro M&M EM M&M Euro M&M Euro M&M Euro M&M

M&M (E) Energy (E) Gold (E)
(FI) (FI) (FI) (FI) (FI)
Example Low level High level
Current -17.8% 5.2% -28.5% -7.7% -27.1% 1.6% -1.5% 7.0%
Source: Bloomberg L.P., FactSet, J.P. Morgan Asset Management; (Left) CBOT, CME, CRB, LME; (Right) J.P. Morgan Economic Research, MSCI. Commodities represented by
appropriate Bloomberg Commodity sub-index priced in U.S. dollars. Aluminum and copper is priced on LME. Coal is the Newcastle Coal Closing Price (USD/t). Crude oil is Brent crude.
Dutch Natural Gas is Dutch TTF Gas Monthly Near Term (NDEX EUR/mwh). Henry Hub Gas is Natural Gas Henry Hub Spot Price (USD/Mmbtu). 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 Global Agg, Credit – Corporate Energy Index (Energy (FI)); Bloomberg U.S. Agg. Credit – Corporate High Yield Metals & Mining Index (U.S. M&M (FI)); Bloomberg 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
68 used to calculate annualized returns (Ann. Ret.) and 5-year price return data used to calculate annualized volatility (Ann. Vol.), reflects the period 31/12/17 – 31/12/22. Past performance is
not a reliable indicator of current and future results. Guide to the Markets – Asia. Data reflect most recently available as of 31/12/22.
Oil: Short-term market dynamics GTM ASIA 69
Global oil supply and demand Price of oil

Million barrels / day Brent crude, USD / bbl
105 150
Forecast
07/2008: $145.65
03/2022: $133.18
100 125
06/2014: $115.19
95 100
12/2022:
90 75 $85.91
Other asset classes
85 50
25 12/2008: $33.73
80
04/2020: $9.12
75 0
'18 '19 '20 '21 '22 '23 '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) Global Trade Tracker, U.S. Energy Information Administration; (Right) Commodity Research Bureau.
Alternative sources of income GTM ASIA 70
Asset class yields
18%
15.8%
16%
14%
12.8%
12%
10%
7.8%
8%
6.9% 6.7%
6% 5.3%
4.8% 4.6% 4.4% 4.2%
Other asset classes
3.9% 3.8% 3.7% 3.6%

4% 3.3% 3.1%
2.0% 1.7%
2%
0%
Global Asia HY USD EM high APAC ex-JP Global Infra. Local cur. Global APAC U.S. DM high Europe U.S. Eur. APAC Convertibles U.S.
transport bonds EMD div. equity high div. HY bonds assets EMD REITs real 10-year div. equity real real equity ex-JP equity equity
equity estate estate estate
Equity Fixed income Alternatives
Source: Alerian, Bank of America, Bloomberg 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 – North America (U.S.
real estate), market weighted-average of MSCI Global Property Fund Indices – UK & Continental Europe (Europe real estate), MSCI Global Property Fund Index – Asia
Pacific (APAC real estate), FTSE NAREIT Global REITs (Global REITs), MSCI Global Infrastructure Asset Index (Infra. assets), Bloomberg U.S Convertibles Composite
(Convertibles), Bloomberg 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 30/06/22, Infrastructure
31/03/22 and Private Real Estate 31/03/22. Past performance is not a reliable indicator of current and future results.
Understanding alternatives GTM ASIA 71
Alternatives and portfolio risk/return* Public and private market correlations

Annualized volatility and returns, 4Q97 – 3Q22 Correlation coefficient based on quarterly returns
8% 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
3Q08 - 2Q22 Direct Private Long/
Bonds Equities Core RE Core RE Infra. Value Macro
Lending Equity Short
Global Bonds 1.0

60% Stocks
20% Bonds Global Equities 0.4 1.0
20% Alternatives
7% U.S. Core RE -0.2 0.0 1.0
40% Stocks
40% Bonds Europe Core RE* -0.3 0.2 0.8
20% Alternatives
APAC Core RE -0.1 0.1 0.8 1.0
Return
70% Stocks
30% Bonds Global Core Infra -0.1 -0.1 0.3 0.2 1.0
Transport -0.2 -0.1 0.5 0.4 0.0
Timber -0.2 -0.1 0.3 0.2 0.2

Other asset classes
20% Stocks Direct Lending 0.0 0.7 0.3 0.3 0.2 1.0
6% 60% Bonds 50% Stocks
20% Alternatives 50% Bonds Venture Capital 0.1 0.6 0.3 0.2 0.1 0.5
Private Equity 0.1 0.8 0.3 0.4 0.1 0.9 1.0
Equity Long/Short 0.3 0.9 -0.1 0.0 0.0 0.7 0.9 1.0
Relative Value 0.2 0.9 -0.1 0.0 0.0 0.9 0.8 0.9 1.0
Macro 0.1 0.3 0.0 -0.1 0.0 0.1 0.3 0.4 0.3 1.0
30% Stocks
70% Bonds Bitcoin 0.1 0.1 0.1 0.1 0.5 0.1 0.1 0.1 0.1 0.0
5%
2% 4% 6% 8% 10% 12% 14%
Volatility
Source: Bloomberg L.P., FactSet, HFRI, NCREIF, J.P. Morgan Asset Management; (Left) Standard & Poor’s; (Right) Cambridge Associates, Cliffwater, MSCI. *Stocks:
S&P 500. Bonds: Bloomberg 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 30/09/97 – 30/09/22. RE – real estate. Global equities: MSCI AC World Index. Global bonds: Bloomberg 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 – 30/06/22. Past performance is not a reliable indicator of current
71 and future results. Guide to the Markets – Asia. Data reflect most recently available as of 31/12/22.
Global energy transition GTM ASIA 72
Global energy mix Global investments in energy transition

Share of primary energy consumption USD billions, nominal
70% 800
Forecast
700
60%
600
50%
500
40%
400
30%
300
20%
200
Investing principles
10%
100
0% 0
'70 '75 '80 '85 '90 '95 '00 '05 '10 '15 '20 '25 '30 '35 '40 '45 '50 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21
Oil Coal Gas Renewables Other non-fossil fuels Storage, electrification, carbon capture, other Renewable energy
Source: J.P. Morgan Asset Management; (Left) BP Energy Outlook 2022; (Right) Bloomberg L.P. U.S. electricity generation data is from the EIA’s Annual Energy Outlook
2022. Forecast is based on BP’s scenario for global net-zero emissions by 2050. Past performance is not a reliable indicator of current and future results.
New energy vehicles GTM ASIA 73
BEV* and PHEV** in use Electric vehicle charging points

Millions Thousands, publicly accessible
35 2,000
Charging points per
Countries/Regions 2021 1,800 BEV and PHEV
vehicle in use in 2021 276
30 China 15.7
China 73.3
Europe 5.4
1,600 Europe 61.4
U.S. 4.1 114
U.S. 27.6
Rest of the world 7.8
25 Rest of the world 35.6
1,400
215 333
1,200
20 99
1,000
274
178
15
800
77
600 211
10 1150
118
93 54
400 810
43 152
72
5 38 133 510
200 60 121
32 270
67 213
141
0 59
0
'15 '16 '17 '18 '19 '20 '21 '15 '16 '17 '18 '19 '20 '21
Source: International Energy Agency (IEA) – Global EV Outlook 2022, J.P. Morgan Asset Management.
*BEV stands for battery electric vehicles. **PHEV stands for plug-in hybrid electric vehicles. Projected sales are based on the Stated Policies Scenario forecasted by the
IEA, which accounts for all existing policies, policy ambitions and targets that have been legislated for or announced by governments around the world. It includes current
EV-related policies and regulations, as well as the expected effects of announced deployments and plans from industry stakeholders.
Global commodities and sustainable energy GTM ASIA 74
Share of global commodities mining production* by region Commodity input for sustainable energy technologies
2021 Relative importance of commodities
Rare earths Copper Cobalt Nickel Lithium Zinc
Solar PV**
Zinc
Wind
Lithium*
Hydro
Copper
Nuclear
Nickel EVs*** and

battery
storage
Electricity
Cobalt
networks
0% 20% 40% 60% 80% 100%

China APAC ex-China South America North America
Europe Rest of the world
Source: J.P. Morgan Asset Management; (Left) U.S. Geological Survey; (Right) International Energy Agency. Based on the report “The role of critical minerals in clean
energy transitions” where they elaborate further how the relative importance of commodities was determined. *U.S. lithium mining production is excluded in this analysis in
order to protect individual company information.**PV = photovoltaic. ***EVs = electric vehicles. Past performance is not a reliable indicator of current and future results.
Developed market (DM) vs. emerging market (EM) yields GTM ASIA 75
DM real and nominal yields* EM real and nominal yields*
5% 14%
4%
12%
3%
10%
2%
1% 8%
0%
6%
-1%
4%
-2%
-3% 2%
-4%
0%
-5%
-2%
-6%
-7% -4%
Nominal yield Real yield Nominal yield Real yield
Source: FactSet, J.P. Morgan Asset Management. *Nominal yields are the 10-year local currency government bond yield for each respective market. Real yield is
calculated based on nominal yield and the last 12-month average Consumer Price Index (CPI) 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 76
MSCI AC Asia Pacific ex-Japan intra-year declines vs. calendar year returns
Despite average intra-year drops of -21% (median: -18%), annual returns are positive in 21 of 35 (60%) 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% -9% -12%
-20% -10%-14%-16% -12% -14%-12%-11% -13% -13% -18%-16%-16%-13% -13% -16%
-11%
-18% -18%-19% -18%-20%
-21% -21%-19%
-24% -25% -27% -25%
-40% -30% -32%
-34%-34% -33%
-41%-40%
-53%
-60%
-62%
-80%
'88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22
Calendar year return Intra-year decline
Source: FactSet, MSCI, J.P. Morgan Asset Management.

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 77
Bloomberg Global Aggregate USD intra-year declines vs. calendar year returns
Despite average intra-year drops of -4% (median: -3%), annual returns are positive in 16 of 20 (80%) years
10% 9%
8% 8%
7%
7%
6% 6%
5%
4% 4% 5%
5% 4% 4%
2% 3%
1%
0%
0% -1%
-1% -1% -1%
-2% -2% -2% -2%
-2% -2% -2%
-3% -3%
-5% -3% -4%
-5% -5% -5% -4%
-5%
-6%
-10%
-13%
-15%
-16%
-20%
'03 '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 '19 '20 '21 '22
Calendar year return Intra-year decline
Source: Bloomberg L.P., FactSet, J.P. Morgan Asset Management.

Returns are total returns based on Bloomberg 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.
U.S. market implied recession probabilities GTM ASIA 78
Probability of a recession over the next 12 or 24 months
100%
Recession 93.0%
90%
83.4%
80%
70%
60%
50%
Median:
41.0%
40%
Median:
39.4%
30%
20%
10%
0%
'82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22
Next 12 months Median for next 12 months Next 24 months Median for next 24 months
Source: Bloomberg L.P., National Bureau of Economic Research (NBER), J.P. Morgan Asset Management. Recession probabilities derived from a logistic regression
model with the U.S. 10 year – U.S. 2 year spread, U.S. 10 year – U.S. 3 month spread and Goldman Sachs Financial Conditions Index deviation from average as inputs.
Dependent variable is the binary classification of whether there is a recession in the next 12 or 24 months using NBER’s classification of U.S. recessions.
U.S. economic cycle and asset performance GTM ASIA 79
S&P 500 Index across different phases of U.S. business cycle

Index
6,000
5,000
4,000
3,000
2,000
1,000
0
'78 '80 '82 '84 '86 '88 '90 '92 '94 '96 '98 '00 '02 '04 '06 '08 '10 '12 '14 '16 '18 '20 '22
Contraction Early cycle Mid cycle Late cycle
Annualized return of various asset cycles during different phases of U.S. business cycle
EM
Annualized U.S. Australian European EMU UK Japanese AxJ Chinese EM European European U.S. 10Y
U.S. MBS U.S. IG U.S. HY Sovereign
Returns Equities Equities Equities Equities Equities Equities Equities Equities Equities IG HY Treasury
Debt
Contraction (11.6%) (15.7%) (14.6%) (15.7%) (13.7%) (12.5%) (0.3%) 4.5% (3.3%) 2.0% (3.3%) (6.5%) (5.4%) (6.1%) (5.7%) 3.7%
Early Cycle 21.3% 14.3% 14.4% 13.1% 14.9% 12.4% 13.6% 8.3% 13.0% 2.4% 6.2% 13.1% 4.7% 13.5% 8.0% 4.2%
Mid Cycle 10.7% 10.3% 9.0% 9.6% 7.4% 2.6% 11.1% 9.3% 13.6% 1.3% 0.7% 1.7% 1.1% 2.1% 4.9% 5.9%
Late Cycle 5.7% 7.6% 6.1% 5.3% 7.6% 9.9% (6.7%) (9.1%) (7.6%) 3.3% 1.4% 4.2% 0.8% (0.3%) (1.5%) (1.6%)
Full Period 10.6% 8.7% 7.8% 7.8% 7.3% 3.6% 8.8% 6.3% 9.7% 1.9% 1.5% 3.5% 1.4% 3.7% 4.0% 4.2%
Source: Bloomberg L.P., J.P. Morgan Asset Management.

Regime analysis inception date: 31/01/78. K-Means Clustering applied to monthly data points of the following U.S. economic indicators – Core PCE Inflation, Private sector
financial balance as a % of GDP, Consumer confidence, ISM manufacturing new orders, Unemployment rate, OECD composite leading indicator. Latest data as of
30/11/22. Monthly return analysis inception date: 31/01/93 for all assets except for AxJ Equities and EM Equities (start date: 31/01/01), EM Sovereign Debt (start date:
28/02/02), European IG (start date: 31/07/98), European HY (start date: 26/02/99). Local returns are used. Past performance is not a reliable indicator of current and future
results.
Long-term returns of asset classes GTM ASIA 80
Growth of a USD100 investment

Based on inflation-adjusted monthly returns from 31/12/91
1,050
950
850 840
750
650
550
450
390
350
250
190
150
95
50
'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 '22
U.S. equity U.S. high yield U.S. aggregate bonds U.S. cash
Source: Bloomberg L.P., FactSet, J.P. Morgan Asset Management. U.S. equity is based on S&P 500 Total Return Index; U.S. high yield is based on Bloomberg U.S.
Corporate High Yield Total Return Index; U.S. aggregate bonds is based on Bloomberg U.S. Aggregate Index; U.S. cash is based on Bloomberg Short-term Treasury Total
Return Index. Past Performance is not indicative of current or future results.
The compounding effect GTM ASIA 81
MSCI World Index: Performance under different scenarios S&P 500 cumulative price return since 1980**
Index, 1970 = 100 Hypothetical investment of USD100,000
16,000 3,600,000
Annualized return
Total return (dividends received and reinvested 357,603
9.4% 3,200,000
14,000 back into equities)
11,581
Total return (dividends received and reinvested
8.4%
in cash)* 1,300,616
2,800,000
Total return (dividends received but not
12,000 7.0%
reinvested) 1,883,201
11,601
Price return 6.3%
2,400,000 2,253,344
10,000 50,139
2,000,000
8,000 3,557,066
7,196 84,006
1,600,000 3,187,882
6,000
1,200,000 113,844
2,206,310
4,000 3,615 800,000 1,589,858

2,503 1,189,878
2,000 400,000
0 0
'70 '75 '80 '85 '90 '95 '00 '05 '10 '15 '20 Stay invested Missed top Missed top Missed top Missed top
1 day 5 days 10 days 15 days
Total return if remained invested since 1980
Total return from missing stated days
Implied compounding loss Actual loss from missing days
Source: FactSet, J.P. Morgan Asset Management; (Left) MSCI; (Right) Standard & Poor’s. *Reinvestment in cash based on the same month U.S. three-month Treasury bill
(secondary market) yield. Past performance is not a reliable indicator of current and future results. **More than 10,000 trading days used to calculate the total cumulative
price return of S&P 500 since 1/1/80. Past performance is not a reliable indicator of current and future results.
Portfolio construction, asset class returns and volatility GTM ASIA 82
Annualized returns and volatility

Total returns in USD*
12%
Hypothetical portfolio construction

Conservative Balanced Aggressive High yielding
DM equities 10% 30% 20% DM HD equities 25%
10%
EM equities 5% 10% 40% EM HD equities 10%
U.S. HY 10% 15% 10% APxJ HD equities 10% U.S.
U.S. bonds 25% 10% 5% U.S. HY 20%
Cash 35% 10% 0% EMD 15%
8% EMD 10% 15% 5% Asian bonds 15%
Annualized returns
REITs 5% 10% 20% REITs 5%

Private real estate
DM REITs
6% U.S. HY
High yielding DM HD Gold

Hedge fund - rel val Asian bonds Balanced AxJ HD
EMD
4% APxJ HD
Hedge fund - macro Hedge fund - distressed
Aggressive APxJ
U.S. bonds AxJ
Conservative Europe
2%
Hedge fund - mkt neutral
EM HD
Cash EM
0%
0% 5% 10% 15% 20% 25%
Annualized volatility
High dividend (HD) equities Equities Bonds and cash Alternatives Portfolios
Source: Bloomberg 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 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 31/12/07 and 31/12/22 are used for all asset classes except hedge funds, where monthly total returns
between 30/11/07 and 30/11/22 are used.
60/40 stock-bond portfolio performance GTM ASIA 83
Annual returns in a 60/40 stock-bond portfolio
50%
40% 19% 21%

20% 21%
18% 19%
17%
16% 15%
30%
15% 15%
13% 13%
12% 11% 12% 11%
20% 9% 8% 9%
6% 7%
10%
3%
1%
0%
-0.2%
-1%
-10% -5%
-5%
-7%
-20%
-8%
-7%
-30%
-16%
-40% -22%
-50%
'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 '22
Stock total return Bond total return Portfolio total return
Source: Bloomberg L.P., FactSet, MSCI, J.P. Morgan Asset Management. Returns are calendar year. Portfolio returns reflect allocations of 60% in the MSCI AC World
Index and 40% in the Bloomberg Aggregate Bond Index. Returns are total returns.
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*
80%
Stocks and bonds moving
in the same direction
60%
40%
20%
0%
-20%
-40%
-60%
-80%
Stocks and bonds moving
in the opposite direction
-100%
'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 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 U.S. Aggregate
Government Treasury and Bloomberg 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 The MSCI Pacific IndexSM is a free float-adjusted market capitalization index that is designed to
returns do not include fees or expenses. measure equity market performance in the Pacific region. As of June 2007, the MSCI Pacific Index
The S&P 500 Index is widely regarded as the best single gauge of the U.S. equities market. This consisted of the following 5 Developed Market markets: Australia, Hong Kong, Japan, New
world-renowned index includes a representative sample of 500 leading companies in leading Zealand, and Singapore.
industries of the U.S. economy. Although the S&P 500 Index focuses on the large-cap segment of The MSCI Europe ex UK IndexSM is a free float-adjusted market capitalization weighted index that
the market, with approximately 75% coverage of U.S. equities, it is also an ideal proxy for the total is designed to measure the equity market performance of the developed markets in Europe,
market. An investor cannot invest directly in an index. excluding the United Kingdom. The
The Tokyo Stock Price Index ('TOPIX') is a composite index of all common stocks listed on the MSCI Europe ex UK Index consists of the following 15 developed market country indices: Austria,
First Section of Tokyo Stock Exchange (TSE).The index is basically a measure of the changes in Belgium, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway,
aggregate market value of TSE common stocks. The base for the index is the aggregate market Portugal, Spain, Sweden, and Switzerland.
value of its component stocks as of the close on January 4, 1968. The aggregate market value is The MSCI Pacific ex Japan IndexSM is a free float-adjusted market capitalization index that is
calculated by multiplying the number of listed shares of each component stock by its price and designed to measure equity market performance in the Pacific region, excluding Japan. As of June
totaling the products derived there from. 2007, the MSCI Pacific Index consisted of the following 4 Developed Markets: Australia, Hong
The Bombay Exchange Sensitive Index (‘SENSEX’), first compiled in 1986, was calculated on a Kong, New Zealand, and Singapore.
"Market Capitalization-Weighted" methodology of 30 component stocks representing large, well- The MSCI USA IndexSM is designed to measure the performance of the large and mid cap
established and financially sound companies across key sectors. The base year of SENSEX was segments of the U.S. market. With 586 constituents, the index covers approximately 84% of the
taken as 1978-79. SENSEX today is widely reported in both domestic and international markets free float-adjusted market capitalization in the U.S.. The MSCI USA Index was launched on Dec
through print as well as electronic media. It is scientifically designed and is based on globally ember 31, 1969.
accepted construction and review methodology. Since September 1, 2003, SENSEX is being
calculated on a free-float market capitalization methodology. The MSCI China IndexSM captures large and mid cap representation across China H shares, B
shares, Red chips and P chips. With 148 constituents, the index covers about 84% of this China
The Korea Composite Stock Price Index (‘KOSPI’) is market capitalization based index on all equity universe. The MSCI China Index was launched on December 31, 1992.
common stocks listed on the Stock Market Division of the Korea Exchange (KRX) and excludes
preferred stocks. The stock price index is calculated using the actual price traded on the market The MSCI Indonesia IndexSM is designed to measure the performance of the large and mid cap
and not the “base price” used for market management such as establishment of price change segments of the Indonesian market. With 25 constituents, the index covers about 84% of the
limits. When no market price is available for issues that are not being traded or have halted trading, Indonesian equity universe. The MSCI Indonesia Index was launched on December 31, 1990.
the latest closing price is used. KOSPI was a assigned a base index of 100 set to January 4, 1980. The MSCI Korea IndexSM is designed to measure the performance of the large and mid cap
The China Shenzhen Composite Index is an actual market-cap weighted index that tracks the segments of the South Korean market. With 105 constituents, the index covers about 84% of the
stock performance of all the A-share and B-share lists on Shenzhen Stock Exchange. The index Korean equity universe. The MSCI Korea Index was launched on December 31, 1989.
was developed on April 3, 1991 with a base price of 100. The MSCI India IndexSM is designed to measure the performance of the large and mid cap
The Euro Stoxx 600 Index represents large, mid and small capitalization companies across 18 segments of the Indian market. With 71 constituents, the index covers about 84% of the Indian
European countries. equity universe. The MSCI India Index was launched on December 31, 1993.
The MSCI® EAFE (Europe, Australia, Far East) Net Index is recognized as the pre-eminent The MSCI Japan IndexSM is designed to measure the performance of the large and mid cap
benchmark in the United States to measure international equity performance. It comprises 21 MSCI segments of the Japan market. With 315 constituents, the index covers approximately 84% of the
country indexes, representing the developed markets outside of North America. free float-adjusted market capitalization in Japan. The MSCI Japan Index was launched on
December 31, 1969.
The MSCI Emerging Markets IndexSM is a free float-adjusted market capitalization index that is
designed to measure equity market performance in the global emerging markets. As of June 2007, The MSCI Hong Kong IndexSM is designed to measure the performance of the large and mid cap
the MSCI Emerging Markets Index consisted of the following 25 emerging markets indices: segments of the Hong Kong market. With 42 constituents, the index covers approximately 84% of
Argentina, Brazil, Chile, China, Colombia, Czech Republic, Egypt, Hungary, India, Indonesia, the free float-adjusted market capitalization of the Hong Kong equity universe. The MSCI Hong
Israel, Jordan, Korea, Malaysia, Mexico, Morocco, Pakistan, Peru, Philippines, Poland, Russia, Kong Index was launched on December 31, 1972.
South Africa, Taiwan, Thailand, and Turkey. The MSCI Taiwan IndexSM is designed to measure the performance of the large and mid cap
The MSCI ACWI (All Country World Index) Index is a free float-adjusted market capitalization segments of the Taiwan market. With 113 constituents, the index covers approximately 84% of the
weighted index that is designed to measure the equity market performance of developed and free float-adjusted market capitalization in Taiwan. The MSCI Taiwan Index was launched on
emerging markets. As of June 2009 the MSCI ACWI consisted of 45 country indices comprising 23 December 31, 1989.
developed and 22 emerging market country indices. The MSCI Environmental, Social and Governance (ESG) Universal Indices are designed to
The following MSCI Total Return IndicesSM are calculated with gross dividends: address the needs of asset owners who may look to enhance their exposure to ESG while
This series approximates the maximum possible dividend reinvestment. The amount reinvested is maintaining a broad and diversified universe to invest in. By re-weighting free-float market cap
the dividend distributed to individuals resident in the country of the company, but does not include weights based upon certain ESG metrics tilting away from free-float market cap weights, the indices
tax credits. enhance exposure to those companies that demonstrate both a higher MSCI ESG Rating and a
positive ESG trend, while maintaining a broad and diversified investment universe.
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.
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 Small-capitalization investing typically carries more risk than investing in well-established "blue-
Exchange's oil futures contracts. chip" companies since smaller companies generally have a higher risk of failure. Historically,
The Bloomberg Commodity Index is calculated on an excess return basis and reflects commodity smaller companies' stock has experienced a greater degree of market volatility than the average
futures price movements. The index rebalances annually weighted 2/3 by trading volume and 1/3 stock.
by world production and weight-caps are applied at the commodity, sector and group level for Mid-capitalization investing typically carries more risk than investing in well-established "blue-chip"
diversification. Roll period typically occurs from 6th-10th business day based on the roll schedule. companies. Historically, mid-cap companies' stock has experienced a greater degree of market
The Bloomberg Commodity Subindexes represent commodity groups and sectors, as well as volatility than the average stock.
single commodities, that make up the Bloomberg Commodity Index. The subindexes track Real estate investments may be subject to a higher degree of market risk because of
exchange-traded futures of physical commodities, and the commodity groups and sectors, like in concentration in a specific industry, sector or geographical sector. Real estate investments may be
the case of the broad index, are weighted to account for economic significance and market liquidity. subject to risks including, but not limited to, declines in the value of real estate, risks related to
The various subindexes include Agriculture, Energy, Livestock, Grains, Industrial Metals, Precious general and economic conditions, changes in the value of the underlying property owned by the
Metals and Softs. trust and defaults by borrower.
The Bloomberg High Yield Index covers the universe of fixed rate, non-investment grade debt. International investing involves a greater degree of risk and increased volatility. Changes in
Pay-in-kind (PIK) bonds, Eurobonds, and debt issues from countries designated as emerging currency exchange rates and differences in accounting and taxation policies can raise or lower
markets (e.g., Argentina, Brazil, Venezuela, etc.) are excluded, but Canadian and global bonds returns. Also, some markets may not be as politically and economically stable as other nations.
(SEC registered) of issuers in non-EMG countries are included. Original issue zeroes, step-up Investments in emerging markets can be more volatile. The normal risks of international investing
coupon structures, and 144-As are also included. are heightened when investing in emerging markets. In addition, the small size of securities
The Bloomberg 1-3 Month U.S. Treasury Bill Index includes all publicly issued zero-coupon U.S. markets and the low trading volume may lead to a lack of liquidity, which leads to increased
Treasury Bills that have a remaining maturity of less than 3 months and more than 1 month, are volatility. Also, emerging markets may not provide adequate legal protection for private or foreign
rated investment grade, and have $250 million or more of outstanding face value. In addition, the investment or private property.
securities must be denominated in U.S. dollars and must be fixed rate and non convertible. Investments in commodities may have greater volatility than investments in traditional securities,
The Bloomberg Corporate Bond Index is the Corporate component of the U.S. Credit index. particularly if the instruments involve leverage. The value of commodity-linked derivative
instruments may be affected by changes in overall market movements, commodity index volatility,
The Bloomberg TIPS Index consists of Inflation-Protection securities issued by the U.S. Treasury. changes in interest rates, or factors affecting a particular industry or commodity, such as drought,
The J.P. Morgan EMBI Global Index includes U.S. dollar denominated Brady bonds, Eurobonds, floods, weather, livestock disease, embargoes, tariffs and international economic, political and
traded loans and local market debt instruments issued by sovereign and quasi-sovereign entities. regulatory developments. Use of leveraged commodity-linked derivatives creates an opportunity for
increased return but, at the same time, creates the possibility for greater loss.
The J.P. Morgan GBI-EM Global Diversified consists of regularly traded, liquid fixed-rate,
domestic currency government bonds to which international investors can gain exposure. The Derivatives may be riskier than other types of investments because they may be more sensitive to
weightings among the countries are more evenly distributed within this index. changes in economic or market conditions than other types of investments and could result in
losses that significantly exceed the original investment. The use of derivatives may not be
The J.P. Morgan Corporate Emerging Markets Bond Index (CEMBI): The CEMBI tracks total successful, resulting in investment losses, and the cost of such strategies may reduce investment
returns of US dollar-denominated debt instruments issued by corporate entities in Emerging returns.
Markets countries, and consists of an investable universe of corporate bonds.
There is no guarantee that the use of long and short positions will succeed in limiting an
The J.P. Morgan Domestic High Yield Index is designed to mirror the investable universe of the investor's exposure to domestic stock market movements, capitalization, sector swings or other risk
U.S. dollar domestic high yield corporate debt market. factors. Investing using long and short selling strategies may have higher portfolio turnover rates.
The VIX-CBOE Volatility Index measures market expectations of near-term volatility conveyed by Short selling involves certain risks, including additional costs associated with covering short
S&P 500 Index (SPX) option prices. 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
constant one-month at-the-money options on U.S. Treasuries. and expectations. They are for illustrative purposes only and serve as an indication of what may
Price to forward earnings is a measure of the price-to-earnings ratio (P/E) using forecasted occur. Given the inherent uncertainties and risks associated with forecast, projections or other
earnings. Price to book value compares a stock's market value to its book value. Price to cash forward statements, actual events, results or performance may differ materially from those reflected
flow is a measure of the market's expectations of a firm's future financial health. Price to or contemplated. Positive yield does not imply positive return.
dividends is the ratio of the price of a share on a stock exchange to the dividends per share paid J.P. Morgan Asset Management (JPMAM) Global Market Insights Strategy Team as of 31/12/22.
in the previous year, used as a measure of a company's potential as an investment. There can be no assurance that the professionals currently employed by JPMAM will continue to
Bonds are subject to interest rate risks. Bond prices generally fall when interest rates rise. 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.
The price of equity securities may rise, or fall because of changes in the broad market or changes
in a company’s financial condition, sometimes rapidly or unpredictably. These price movements
may result from factors affecting individual companies, sectors or industries, or the securities
market as a whole, such as changes in economic or political conditions. Equity securities are
subject to “stock market risk” meaning that stock prices in general may decline over short or
extended periods of time.
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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For U.S. only: If you are a person with a disability and need additional support in viewing the material, please call us at 1-800-343-1113 for assistance.
Copyright 2023 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, 2022 or most recently available.
MI-GTMASIA-E Dec 2022
Material ID: 0903c02a823a5888
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Guide To The Markets Asia

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MARKET INSIGHTS

Americas Europe Asia

Dr. David Kelly, CFA Karen Ward Tai Hui

Regional economy Equities Other asset classes

Exports Tourist arrivals

Year-over-year change, 6-month moving average Relative to respective month in 2019

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

Year-over-year change Index

12% YTD '22: 3.0%

Index, 2019 average as 100, 7-day moving average

Shenzhen Beijing Shanghai Jul ‘22 Dec ‘22

Fixed asset investment Consumption

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

Year-over-year change Trillion RMB

Residential property price Housing volume*

-25% -35 0.0%

Chinese yuan exchange rate

CFETS Index* USD/CNY

Annual real GDP growth Headline consumer price inflation

Global manufacturing and services PMI Global manufacturing PMI breakdown

60 DM* 47.8 47.3

50 Italy 48.4 48.5

International trade Foreign direct investments

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. 7.8% 7.1%

Eurozone 10.6% 10.1%

Japan 3.8% 3.8%

Australia 5.2% 5.9%

China 2.1% 1.6%

India 6.8% 5.9%

Korea 5.7% 5.0%

Taiwan 3.0% 2.5%

Indonesia 5.7% 5.4%

Malaysia 4.0% 4.0%

Thailand 6.0% 5.5%

Brazil 6.5% 5.9%

Mexico 8.4% 7.8%

Turkey 85.5% 84.4%

South Africa 7.6% 7.4%

Global core inflation Global food and energy prices*

Food Crude Oil (3-month moving average)

0% 20% 40% 60% 80% 100%

Inflation and central bank inflation targets

10% Inflation target or midpoint

Real GDP Component contribution to GDP

Source: Bureau of Economic Analysis, FactSet, J.P. Morgan Asset Management.

U.S. economic indicators

-3% -6% -25% -20%

Mortgage rate and housing starts Distribution of mortgage rates