Excessive pessimism still dominates Asia after a dramatic opening to 2016 when fears were centred on an economic crash in China, and investors assumed weak oil prices presaged dire prospects for global growth.
Capital outflows exacerbated the market's worries. By the end of March, economic data pointed to stabilisation. Capital outflows reduced significantly and the oil price recovered. Policy decisions in China have taken on a more market-friendly tone and domestic growth appears to be gaining momentum. Fixed asset investment growth and infrastructure projects are helping China's 'old economy'. After a 40% rebound in prices, steel mills are profitable once more and the property market is buoyant. Trade weakness persists but this is a global issue. Meanwhile, domestic Chinese confidence ...
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