Asian markets have become more comfortable with growth prospects

ASIA

The decline in Asian equity markets that marked the beginning of the year are in many ways emblematic of investing in Asia - there will always be volatility.

However, the subsequent pick-up in markets and in sentiment reinforce our optimistic stance on the region. A key reason for this is in recent months markets have become more comfortable with the prospects for economic growth in spite of the gradual withdrawal of global liquidity stimulus. In Asia, the phased removal of emergency measures is a reflection of their success and in our view should help to foster sustainable long-term growth. We are optimistic markets can make the transition from being liquidity driven to earnings led. Consensus expectations are for strong earnings growt...