The Federal Reserve's monetary easing has been good for emerging Asia.The central bank's aggressive stimulus policies have sparked a dramatic search for yield by investors, driving as much as $9 billion in assets per quarter to emerging Asia since 2009, according to the East Asian Bureau of Economic Research, a forum among official and independent research organizations in the region. But with the Fed poised to end quantitative easing and pondering rate hikes in 2015, Asian markets will have to get by on their own. The mostly developing region's biggest driver, China, should grow just 7.5 percent this year, the International Monetary Fund says, below the 9.3 percent of only three years earlier, as Beijing pushes consumption to replace government-fueled investment. Against these pressures-but also with a list of new bright spots, from Japan to renewable energy-fund managers are relying on their own formulas, including picking undervalued Chinese stocks and chasing Islamic assets, to impress investors who understand Asia better now than ever.
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