While rising yields normally spell bad news for stocks, equities markets around the world have been defying conventional wisdom. Speaking on Bloomberg markets, Asia, East Spring investments, Asian equities portfolio specialist, Ken Wang highlighted strong performances across North America and Asia to date but is watching earnings season closely for what is to come in the second half of the year. What's front incentive for investors as they sell off today?

Yeah, the fact is is that there is quite a bit of profit taking. The fact is is that when you look at a lot of the markets, you know, around the world, there's, you know, they've gone up quite a bit and the fact is is that this is a good opportunity for those investors to take some money off the table. Don't, you know, we have to remember still that we're in a very high interest rate environment right now. S

o the fact is is that, you know, the the cost of capital has gone up. And so you know, when there is these, you know, news and tis that comes out, you know, that does prove to be opportunities for investors to reduce some of their exposures in the markets, we're seeing yields rise. Right? Can, I mean, if they continue to inch higher? Surely that's bad news for stocks as well.

Yeah. And, and that's been, you know, sort of the case, uh, for the past year. Right. The fact is, is that, you know, it has been somewhat negative but, you know, I think the markets have operated slightly different. The fact is, is that when you look at most major markets this year, they've done very well. Look at the NASDAQ, NASDAQ is up 30 plus percent. You look at Japan, it's up 20%. You look at Taiwan, you look at Korea, it's up 20%. You look at some ofsome of the frontier markets like Vietnam is up 20%.

So the fact is, is that a lot of the equity markets are bucking the trend to some extent where they are going to be specific, more focus on, you know, sort of not necessarily what's been happening, you know, sort of in terms of the interest rate policies. But I think going forward what's likely to come, you know, we're definitely sort of closer to the top of the interest cycle. And so this is one of the things I think investors are now looking forward to and of course, you know, we have first half earnings season and so it's going to be interesting to see specifically what is likely to come, you know, when more and more companies report their first half report card and then specifically what their guidance is going to be like for the second half of the year.