The End of Asia’s Boom Is No Cause for Panic

The trading floor of the Hong Kong Stock Exchange on Aug. 13 Photograph by Jerome Favre/Bloomberg

Over the past few weeks investors have been bailing out of the major Asian markets faster than Jimmy Connors’s tenure as a tennis coach. As Thailand released its 2013 second-quarter growth figures, which revealed the country had fallen into a technical recession, investors have been selling off Thai bonds and getting out of the Bangkok stock exchange. In India the rupee has hit new record lows against other currencies as the country has been reporting enormous current-account deficits. In Jakarta, Hanoi, and even in more stable Asian economies such as Singapore and Malaysia, similar outflows of capital are mounting, exacerbated by the U.S. Federal Reserve’s hints that it may slowly end the period of quantitative easing, marking the worldwide end of cheap credit.

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