Asia will be silver lining within emerging markets in 2015

IT MAY sound contradictory to say that Asian economic growth outside Japan will slow next year, and yet the region will be a silver lining for emerging markets. But both statements are likely to hold true. Asian emerging markets are mainly net importers of commodities and will remain supported by tailwinds such as the recent falls in commodity prices. They are also better placed to weather tighter funding conditions caused by rises in the US dollar and US market interest rates. Despite lingering issues like falling property prices and rising corporate debts, Asian emerging markets should hold up relatively well next year.

At first glance, the backdrop facing Asia outside Japan is lacklustre. We...

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