Morgan Stanley predicts that Asia will expand faster than either the United States or Europe in 2018.

Morgan Stanley predicts that this year, Asia's economic growth, driven by robust domestic demand, will outstrip that of the United States and Europe.

"The big argument that we've been making... for Asia, including Japan, to outperform versus U.S. and Europe — is the fact that there is domestic demand strength," Chetan Ahya, chief Asia economist, said on CNBC's "Street Signs Asia" on Monday.