Three main views, two themes: Our main 2011 Outlook views were (1)
DM over EM (2) North Asia vs. South Asia, and (3) Returns to be back-end
loaded in 2H 2011.
 What’s changed? DM has outperformed EM; Korea, Taiwan, and
Australia topped the region; sector tilts reflect global growth appetite, less
optimism on domestic demand stories. DM growth expectations have risen,
EM inflation pressures have increased.
 Updated views: More neutral stance on DM vs. EM; still prefer North
over South Asia; looking for a good entry point into China; trimming
numbers in India and ASEAN.
 Implementation: We continue to favor Taiwan, Korea, and Japan,
emphasize global cyclicals (tech, energy, cap goods), and highlight knockin
risk reversals on China and inexpensive calls on Taiwan.