Low volatility in stock markets signals some respite for Asia: Report

Volatility gauges are signalling that investors may have significantly cut their exposure to Asian stocks, bolstering the case that the region’s equities now have limited downside after a bruising year.
 

Volatility indices tied to stock benchmarks in Japan, South Korea, Hong Kong and India now average 23.7, down from a high of 32.6 in March. Their US counterpart stands at 28.6.
 

Implied volatility tends to rise when asset prices suffer a downtrend, as investors snap up put options to hedge against further losses. It typically falls in bullish markets. There are signs that global investors are turning more optimistic about