OCTOBERASIA BUSINESS OUTLOOK8NEWSROOMSINGAPORE TOPS GENERATIVE AI ADOPTION WORLDWIDEThe latest US Federal Reserve interest rate cut is considered a positive sign for Asian markets. Most Asian assets are believed to be under-represented, and have more scope for earning improvement and receiving the benefits of easing measures than many global counterparts. Analysts and fund managers believe that the 50-basis-point cut is less to do with ailing economy than with the need to avoid a hard landing for the US economy. This is believed to assist in dealing with some of the issues affecting Asian markets including high valuations and escalating trade tensions. Gary Dugan of Global CIO Office in Singapore said that the rate cut means that the Fed is willing to do everything to support the growth of the economy and this should be taken well by investors in Asia. After the announcement, regional stocks posted good gains, with the Japan's Topix up by more than 2 percent and the MSCI by 1.3 percent, outperforming US markets. Asian currencies had a mixed bag of responses; however, most of the currencies have appreciated over the last month except for the Hong Kong dollar. The yen fell as investors await the next move from the Bank of Japan while regional bonds showed mixed performance even as US Treasury yields dropped. Anew Vodafone Business study shows that 51 percent of APAC organisations are already using Generative AI, a percentage that outperforms the global one of 45 percent. The survey carried out by London School of Economics shows that Singapore is leading the way with 59 percent of the firms using AI. The survey comprises 760 companies and 1,760 customers in Singapore, China, India and Australia that shows more and more Asia-Pacific businesses are expanding their technology adoption despite economic downturn. In 2023, 60 percent of the surveyed organizations in the region had planned to enhance their digital transformation budgets while the current year results show that 70 percent of the companies have enhanced their budgets. But at the same time the interest in the effects of new technologies such as AI remains high even with the increased investment. This research has revealed that 65 percent of the APAC organizations are concerned with the loss of customer trust, especially with regards to personal data. Out of all the businesses surveyed, 57 percent stated that privacy issues were the main factor for this apprehension. Hence, even though the APAC businesses are adopting AI and digital solutions at a rapid pace, they are careful with the threats that come with the technology especially concerning customers' trust and data security. US FED RATE CUT BOOSTS PROSPECTS FOR ASIAN ASSETS
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