Don't expect Asian volatility to end soon

ON ASIA

Despite Asian equities delivering one of their worst quarterly performances in nearly a decade, we cannot be sure markets are past the worst.

The eurozone debt crisis and a stalling US recovery are issues that will plague global markets well into year end, and cast a cloud over equity performance in Asia. Volatility, therefore, is likely to feature in Asian markets for many more weeks. Performance in China continues to weigh heavily on the region as the market seems unable to decide whether it is in for a hard or soft landing. We maintain the view it will not have a hard landing, even though it will continue to see some slowdown in economic growth. While concerns about non-performing loans to local governments is certainly rea...