The stronger the current account surplus, the easier the liquidity conditions for that economy. Economies with current account deficits are always at the mercy of the willingness of other countries to lend them funds. Greece's current problem offers a prime example.

Chart 6 shows Malaysia with an incredible surplus of 15% of GDP, Thailand a strong 7% and Indonesia a healthy 2%--in stark contrast to the 1995-97 deficit situations that led to the Asian financial crisis of 1998 when foreign funds exited.

Liquidity in the banking system is the other key provider of funds. A good indicator here is the loans-to-deposit ratio (LDR) that measures the lending capacity of banks (Chart 7). With ratios at over 100% at the pre-1998 crisis, ASEAN banks were relying on foreign borrowings to fund domestic spending and investments. In contrast, ASEAN banks now have plentiful liquidity, with LDRs ranging from 70% to 85%.

2. Confidence: Of various consumer and business confidence indexes, one of the best proxies is home purchases.

Summary: Currently, ample liquidity exists to propel sustainable investment booms in ASEAN that could rival or even exceed pre-1998 peaks. Indonesia is leading. Its GDCF as a percentage of GDP in 2009 scaled the 1996 peak (Chart 9) and with a positive current account balance.

Indonesia's local confidence factor ranks at the top, but Malaysia is not far behind and improving. Despite political turmoil, sales of cars and homes in Thailand have stayed buoyant.

Eoin Treacy's view ASEAN countries have been among the better performers as well as being among the leaders since October 2008, at least in part because they offer prime examples of the growth in the global middle class which is helping to drive economic activity and domestic demand stories.

Indonesia has rallied impressively since February and moved to a new all time high in March. It is now testing the psychological 3000 level and is overextended relative to the 200-day moving average. A sustained move below 2800 would likely signal the onset of a reversion towards the ascending MA.

Despite political upheaval, Thailand's stock market has held the majority of its gain and is retesting the 800 level. While the current selling pressure may weigh on the market, a sustained move below 700 would be required to question scope for additional medium-term upside.

Malaysia has also rallied impressively from its February low and is not as overextended relative to the MA as Indonesia. A sustained move below 1320 would break the progression of higher reaction lows and would probably indicate that a reversion towards the mean is underway.

Singapore paused below 3000 in January and failed to sustain a move above it last month. A sustained move to new recovery highs would be required to signal a return to demand dominance and an end to what appears to be the beginning of a mean reversion correction.200-day moving average.

Philippines found support near the MA in February and remains in a consistent medium-term uptrend; albeit overextended relative to the MA. A sustained move below 3150 would be required to question the consistency of the advance and signal a reversionary process is unfolding.

Vietnam has been a laggard among ASEAN countries and as a result is less overextended than the others. It continues to sustain its progression of rising reaction lows and is currently testing the 550 level. A downward dynamic would be required to check scope for further upside while a sustained move back below 500 would be needed to question the consistency of the medium-term advance.

The above charts illustrate that these countries are home to some of the world's best performing stock markets. The consistency of the uptrends suggest that while a number of these trends are overextended relative to their 200-day moving averages, the extent of any pull back that might occur is likely to be limited to a mean reversion.