Asian equities remaining sound in spite of recent market turbulence

Following years of significant outperformance, the markets of Asia ex-Japan are lagging the rest of ...

Following years of significant outperformance, the markets of Asia ex-Japan are lagging the rest of the world this year. In view of the persistence of weak conditions in the US and the developments we have witnessed on the commodity front, this underperformance is not entirely surprising. As a big exporter to the US and Europe, Asia is certainly vulnerable to a significant slowdown in developed economies. This vulnerability should diminish gradually, as Asian economies trade more with each other and domestic investment and consumption contribute more to GDP. However, exports to the rest o...