Why Asia's investors are now political animals

In a now famous moment of intellectual hubris, Francis Fukuyama in 1989 declared the end of history’.

The impending collapse of the Soviet Union, and the clear triumph of the United States economy, left Fukuyama convinced the big political questions had been answered with Western liberal democracy having won the day. Investors, it appeared, no longer had to focus on broad political changes when considering how to allocate their portfolios.

Clearly, he spoke too soon. Donald Trump’s election and the United Kingdom’s vote to exit the European Union no doubt spring to mind when investors consider political risk over the last year. British Prime Minister Theresa...