What will help Asian equities bounce back?

ON ASIA

Recent market movements have left Asian equities significantly underperforming other global markets so far this year.

The sell-off seemed to result from a culmination of factors: a glimpse of the end of quantitative easing in the US; a resurgence of concerns about the stability of the eurozone, led this time by Portugal; further signs that China’s economy is slowing; and an unexpected spike in Chinese interbank rates that signalled the likelihood of harder access to credit. Although all of these reflect real issues, within different economies, none of them immediately changes the view that there are very attractive stocks in Asia which are paying significant, sustainable dividends, while also translatin...