The macroeconomic conditions in the region remained challenging in 2Q 2012, with growth
rates reducing and price inflation continuing in most countries. The sovereign debt issues
in the Eurozone have become a key concern, as it continues to have a negative impact on
market sentiment. The expectation of further economic consolidation has led to a number
of central banks cutting rates pre-emptively to stimulate growth. The two rounds of
unexpected interest rate reductions in China is an example of how the region has reacted
to the imminent threat created by the contraction in Europe.
