Break in long-term trend brings a much-needed respite for Asian shares

After two years of outperformance, Asia ex-Japan is experiencing a much-needed pause in a strong lon...

After two years of outperformance, Asia ex-Japan is experiencing a much-needed pause in a strong long-term trend. Without this break, inflation could rise substantially and dampen economic growth. Meanwhile, investors who are concerned about a US slowdown can take heart from Asia's decreasing dependence on the US economy, giving way to domestic sources of growth. Asia ex-Japan was formerly seen as simply a supplier to the West, but that story is changing. Emerging Asian countries have built substantial surpluses on the back of their successful export models, and they have begun to deploy ...