Decoupling is key to Asian strength

MARKET VOICE

As long as the US soft-lands, most Asian currencies should strengthen against the dollar. From the perspective of the real economies, Asia is less coupled to the US than it was before 1990. At the same time, however, in practical terms, equity inflows will be the key channel through which foreign investors need to validate this view that Asia could decouple from the US.

Equity inflows to Asia have not recovered since May. If our call for a correction in USD/Asia is to be proved right, equity

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