DBS Vickers On The Growth That Came "From Nowhere"

It is still about the "recovery", as DBS Vickers detects it in its latest quarterly:

How can Asia's central banks push ahead with monetary tightening when the Fed is discussing QE2 (additional long-term bond purchases)? More to the point: why isn't trouble in the US and Europe killing Asia's recovery?

The short answer is: the US and Europe did not contribute to it. Or very little anyway. If you only thrown a nickel into the pot, taking it back out again doesn't change much.

Click on the chart to enlarge, courtesy of DBS.

The chart above is a bit of mis-representation of weights, but it does not change the direction ...