Markets marginalised over reforms

Asian markets are once again facing extreme stock market weakness, with many of the region's indices at 12 month lows, or worse. However, unlike the Asian crisis of 1997, the current sell-off has occurred against a backdrop of strong earnings growth and progress on structural reform. The degree to which global growth slows will be a crucial factor in the near-term direction of Asian markets. Leading economic indicators certainly point to a decline from the high growth rates we saw in 1999, with third quarter industrial activity in the OECD having decelerated to around 5% year on year. ...