Next Stop Asia

With Asia’s emerging economies posting spectacular growth, Asian investors had hoped that a US recession would cause little concern for their economies. But then global stock markets took a big tumble. World markets are connected, but that does not mean a recession in one part of the world will necessarily devastate another part. Some Asian markets are more vulnerable than others, reminds this article in the Economist. However, governments with large foreign-exchange reserves and stable budgets have flexibility to handle crises. Likewise, firms with manageable debt and capacity can weather the storms brewing in the US or Europe. Meanwhile, domestic demand in Asia remains strong. – YaleGlobal