Fed rate cuts will push liquidity across the globe, including to China, despite strong US jobs data

China may be drawing funds from regional markets now, but global liquidity flows to Asia could be the proverbial tide that lifts all boats

ONE news story that grabbed a lot of attention last week was a retrenchment exercise in Singapore by high-end consumer electronics maker Dyson, for which it had given only a day’s notice to the union. This was soon followed by a report that Samsung Electronics is also cutting jobs in Singapore as part of a plan to reduce its global headcount.

These stories naturally raised concerns about the rights of workers when companies decide to downsize. But they were also something of a wake-up call for investors who have been celebrating surging stock prices in Singapore and the region amid a global loosening of monetary policy.

Companies make adjustments to their staff strength for a wide variety of reasons, including to support changes in their long-term growth strategies. Yet, job cuts are often a means for companies to cope with deteriorating profitability in the face of softening demand.