Asian volatility to continue as bottom is in sight

West's ongoing crisis hitting sector returns reaffirms decoupling from Western markets is a long way off, though it remains a possibility in the longer term

The Asia ex Japan sector has suffered from fairly indiscriminate stock market write-downs over the past year following the fallout from the West's financial crisis. The IMA sector average for one year to 30 March is at -19.6% with the worst performers showing negative returns of over 30%, according to Morningstar. Two of the worst hit funds include Legg Mason Asia Pacific, managed by Batterymarch, which is down 30%, and Melchior Asian Opportunities managed by Henrietta Luk, which is down 29.3%. With the current crisis having emanated from the West, Asia managers are now largely agreed...