Falling US interest rates to help Asian economies

Asian markets performed well at the beginning of the year, aided by interest rate cuts by the US Federal Reserve. This was in stark contrast to the poor time Asia had last year while US interest rates were rising and growth was showing signs of a slowdown. The MSCI Emerging Far East index rose 14.19% in dollar terms in the first two months of the year while for the 12 months to April 2001, the index is down 42.82%. Volatility in the technology sector in the second half of 2000 drove investor sentiment down with negativity hitting the entire range of Asian markets rather than just tech...