Regional markets are expected to continue performing well this year, driven by the same two forces - China and the US
Most Asian markets recouped their 2002 losses last year as global money poured into the region, including Japan, on a theme of asset reflation resulting from rapid demand growth in China and Americans' desire for manufactured goods.
The consensus for this year is that Asia will continue to fare well, driven by the same two forces of China and the United States.
'For 2004, we are still bullish on economic growth - the world's current account imbalances should be corrected not by a bust in the US but by a boom in Asian growth,' Deutsche Bank chief regional strategist David Scott said.
'But, with a whiff of euphoria in the air, we are facing a great money-losing opportunity in the next two quarters,' added Mr Scott, who expected markets would rally in the second half after a first-half sell-off and consolidation.
'There's still too much value around for this to be a long-term top,' he said.