During the third quarter of 2000, the FTSE Pacific (ex. Japan) Index declined 7.0%. Although Asian G...
During the third quarter of 2000, the FTSE Pacific (ex. Japan) Index declined 7.0%. Although Asian GDP growth is strong and analysts are forecasting 20-25% growth in Asian company profits in 2000, there has been a lack of liquidity to drive stock markets higher. Broad money supply has decelerated, not only in the US but also in Asia. In Asia, credit expansion is no longer in excess of nominal GDP growth, as debt levels are still high and there is de-leveraging. In South East Asia, bank systems weakened by the crisis of 1997-78, are taking time to recapitalise and finance credit expans...
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