Morgan: Financial storms to re-step on the stage of Asia

Stephen Roach, researcher of universal economy at Morgan Stanley Dean Writter, pointed out Asia was about to face the same financial storm with 1997 and 1998 in the coming year. He said US economy enjoyed a high growing speed of 4.4% in 1997 and 1997 ,which was 4 times higher than the predicted 0.7% and there were no other places can challenge the growing speed of US economy at present . Under close relation of universal market, Asia would be whopped heavily by the slowdown of US economy while Asia did no make preparation for the risks yet. Another risk is the falling of exchange rate between Japan Yen and US dollars, which may cause fluctuation of Asia currencies. Several years ago, Asia financial storm was ignited by some currency investors. With slowdown of US economy, Asia would lose recovering momentum driven by external demands.

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