Emerging Asia’s GDP growth looks to have rebounded in the final quarter of last year, led by strength in South East Asia. Meanwhile, inflation remains comfortably low for policymakers in most countries. An improvement in global risk appetite has helped currencies and equity markets across the region to strengthen in early 2013. However, Asia’s currencies and equities are likely to fall back if, as we expect, problems within the developed world dull investors’ appetite for risk later this year.
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