Investors in emerging economies – particularly Asia – remain jittery amid turmoil in their stock exchanges and as currency values tumble.
The problems have been triggered by concerns about the expected scaling back by the Federal Reserve of its stimulus measures in the US.
Much of the money that the Fed has been printing has found its way into those developing countries.
Fears that the cash flow could be reversed prompted a sell-off of shares along with currency slumps in places like Brazil and Thailand, and particularly Indonesia and India:
Jim Walker with the economic research firm Asianomic explained why they have been hardest hit: “The fact is that India and Indonesia were standouts in terms of their current account deficits. Everywhere else in the region really is running a current account surplus. And if you look at the way currencies have behaved over the course of the last month they’re really not that much changed from a month ago, whereas in India and Indonesia the changes have been pretty spectacular.”
Those two countries may be suffering most, but the effects are also rippling out through the stock markets and currencies of Japan, China, Australia and New Zealand.
Economists said things could settle down once the Fed’s plans for stimulus reduction become more clear.
Copyright © 2014 euronewsMore about:
- 1Hoverbike on the horizon | euronews, hi-tech
- 2Japanese company brings the beach lifestyle to business | euronews, world news
- 3Earth Overshoot Day arrives earlier as we consume too much | euronews, economy
- 4Canada sends hilarious barb to Russia over Ukraine ‘incursions’ | euronews, world news
- 5#ن: How an Arabic letter was reclaimed to support Iraq’s persecuted Christians | euronews, world news
- 6NATO: ‘Ready to deploy forces’ in response to all security challenges | euronews, world news
- 7Ellen MacArthur: making waves on a journey to a circular economy | euronews, the global conversation
- 8US warns Russia that Ukraine aid delivery would be ‘viewed as an invasion’ | euronews, world news
- 9Renewing your driving licence within the EU | euronews, u talk
- 10Russian aid convoy is ‘direct invasion’ says Ukraine | euronews, world news
- 11Rosetta the comet hunter arrives at its target | euronews, space
- 12Elephants smell better | euronews, science
- 13At least 6 confirmed dead in Paris apartment blast | euronews, world news
- 14Wikimedia says taking a selfie is monkey business | euronews, world news
- 15Hundreds of Ukranian troops retreat across border to Russia | euronews, world news
- 16No candidates are likely to thwart Erdogan, says polling analyst | euronews, news
- 17Spain treats Europe’s first case of Ebola | euronews, world news
- 18Islamists seize border post between Syria and Israeli-occupied Golan Heights | euronews, world news
- 19Voting in Turkey’s Presidential election underway | euronews, world news
- 20Sephardic Jews eye return to Spain | euronews, reporter
Wires > Business
- 01:42 CET Akzo Nobel CEO solicited for Axalta bid worth more than $7 billion…
- 01:32 CET Exelixis to cut jobs after prostate cancer drug fails late-stage…
- 01:29 CET Complaints against British banks fall 42 percent – ombudsman
- 23:44 CET China’s Li Ning stumbles from gold medal position to no man’s land
- 23:37 CET Luxottica overhauls management as CEO Guerra steps down
- 23:14 CET Exclusive – From Seoul to Mexico City, pressure mounts to ease…
- 22:02 CET Peugeot to cut jobs and output at Sochaux plant – unions
- 21:07 CET Hollande, Draghi agree on threat of deflation – official