What to watch in Asia

Strong corporate earnings, improving news from Europe amid tighter sovereign spreads for periphery countries and a reduced fear of China hard landing have provided the catalysts for a decent risk rally in July.

The lessening in fears over China is partly based on expectations of some policy loosening in the second half of the year or the postponement of fresh tightening measures. To an extent, this expectation is justified, as senior government officials recently reiterated a loose monetary

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