Euro Crisis - Impact on Asian Economies
Why Read: For a quick overview of the possible impact on twelve Asian economies, and on Australia, if the euro financial crisis intensifies.
Featured Article: An article this morning reports on the perceived strengths and weaknesses of China, Hong Kong, India, Indonesia, Japan, seven other Asian countries, and Australia providing data for each on:
- trade with Europe;
- lending reliance on Europe bank claims;
- foreign exchange reserves; and
- gross government debt estimates.
Commentary: Of the thirteen countries (including Australia) reviewed in the context of a euro meltdown:
- four (including Australia and China) are said to be reasonably able to withstand such an event;
- one (Indonesia) is said to somewhat neutral to such an event; and,
- eight (including India and Japan) are said to be negatively exposed to such an event.
If you invest or trade in the equity markets, this is an article you ought to take the time to read and think about.
Graphic: How Euro Crisis Affects Asian Countries
Source: The Wall Street Journal - China, June 20, 2012
Reading time: 6 minutes