What is derailing the 'surging Asian locomotive'?

Two key risks

Asia continues to benefit from the synchronised growth in the global economy, on the back of easy monetary policies and benign inflationary conditions. Geopolitical threats in the region have also dampened down in recent months.

Against this favourable backdrop, Asian companies are generating strong earnings growth, which has in turn driven regional equity markets 30% higher this year. The North Asian markets of China, Korea and Taiwan have enjoyed the bulk of the earnings upgrades due to their greater exposure to global supply chains, and this could be poised to continue into 2018. Asian financial crisis: What lessons have been learned 20 years on? What then could derail the surging Asian locomotive? One risk could be the price of oil. The recent rumblings in the Middle East could potentially cause a spik...