Asia hammered by sluggish growth momentum in 1H13

Exports, retail sales to be blamed.

According to Deutsche Bank, growth momentum in Asia has weakened steadily in the first half of this year, driven primarily by disappointing exports, followed by weakening retail sales.

They said that while their Asia market risk-signal has edged back into more 'stable' territory this week compared with June, it remains very close to the risk-off zone.

Here's more from Deutsche Bank:

FX vol markets in particular are giving a more benign signal compared with last month. But equally, risk reversals remain well bid suggesting that the market continues to hold a bullish USD/Asia bias and is persistent demanding protection.

Asian markets do appear to have largely priced in the shift in economic outlook and portfolio flows thus far, though not necessarily overshot to the downside.