Can emerging Asia bounce back from the global sell-off?

While the major catalysts for the recent market meltdown reside almost exclusively in the developed markets – primarily Europe and the US – the violent sell-off in global equities (alongside most other growth sensitive asset classes) over the past few weeks has been largely, if not entirely, indiscriminate as investors scramble to downgrade growth and upgrade (tail) risk assumptions. As such, the MSCI Asia Pacific ex Japan index, down 12.44% since the beginning of August, has in fact underperformed the S&P 500 Index, down ‘just’ 11.30%. Double whammy There have been two main areas o...