In a note released on Thursday ANZ posited.....>

ASIA: In a note released on Thursday ANZ posited that "the volatility in Asian

financial markets stretches beyond escalating trade tensions, in our view. We

believe that the maturing of the region's economic cycle and rising growth

differentials with the US have also become critical headwinds. Various incoming

economic data validate our view that the transition of the regional business

cycle is moving into a 'late' stage. While a late cycle does not in any way

portend an imminent collapse in growth, sluggish or fading momentum at a time

when it is strengthening in the US has accentuated financial market volatility.

The initial phase of market volatility is also at least, selectively having a

knock-on impact on monetary policy in terms of either pushing money market

yields higher or even forcing monetary tightening. As a consequence, financial

conditions, which have a strong bearing on growth, have tightened."