Rising volatility bodes well for Asian stocks

Value should emerge quickly

Asian equity fundamentals continue to look healthy. But with recent volatility, it would be foolish to ignore the linkages between today's global stockmarkets.

Some of the rising correlation between asset classes stems from the low interest-rate environment. As we enter a different interest-rate cycle, these correlations may increase and lead to even greater volatility.  In February, Asian stocks were impacted across the board, although cyclicals (outperformers in 2017) were slightly more affected. Given where the earnings cycle and valuations are, value should emerge more quickly in Asia during bouts of volatility than other parts of the world.  Asian stocks rally following market turmoil The outlook for Asia ex Japan remains very goo...