Timothy Moe, Goldman Sachs said growth risks, reduced policy confidence fueled the equity sell-off. Deteriorating data since June has hurt growth expectations, he added.
According to him, confidence in policy makers' capacity to offset growth concerns has also been shaken in China and elsewhere in the region.
These factors, coupled with declining commodity prices and depreciating currencies, have catalysed a self-reinforcing downward price dynamic in the Asian equity markets, Moe said.
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