Asian equity markets' are enjoying their bull run with ample liquidity in the region, but risks of more intermittent market corrections remain and more structural reforms are needed, said the Standard and Chartered Bank in its economic research Wednesday.

The bank's research team made a review of recent economic development in Asian countries in its latest edition of Asia Focus, which said that the region's economy is much more resilient than 10 years ago but warned that the recent asset inflation requires better liquidity management and authorities need to divert liquidity to real sectors.

More structural reforms rather than quick fixes are needed, especially in directing liquidity to longer term and more productive areas, to reduce any risks of painful corrections, the researchers said.

But they also realized that bank governors and finance ministers of Asian countries are well aware of such risks and are looking for ways to prevent excessive market volatility in the near term as signaled in the 40th Annual Meeting of the Asian Development Bank in Kyoto.

Further liberalization of Qualified Domestic Institutional Investor (QDII) scheme introduced by the Chinese government is considered by the researchers a good effort to divert capital outflow and cool down the overheated A-share market.