Asia Comes Down with the American Flu

It got knocked for a loop by the U.S. meltdown. Now, the markets are jittery about a double dip

For the better part of this year, as U.S. stock markets reeled, investors started looking again to East Asia as an oasis of opportunity. Bourses in South Korea, Thailand, and Indonesia, fueled by buoyant domestic demand, surging exports, and improved financial sectors, were among the world's best performers. As booming China sucked in record imports, hope rose that Asia could rely on a powerful new economic engine. Even Japan began resembling a safe haven for global capital; the Nikkei average soared 21% between February and June.

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