Past experience suggests that Asian stock markets will not get the benefit of improving investor confidence and international capital flows until investors more generally accept that the US equity market has stabilised and is positioned for a sustainable recovery.

Amid the havoc wrought by the financial and economic crisis has been the evaporation of international capital flows that have hurt asset prices and economies across the Asian region. There are plenty of economic data to demonstrate how the reversal of these flows has impacted asset prices across the region, including China.