Sign up | Log in



Home  >>   Daily News  >>   Asean News  >>   Economy  >>   Foreign sell-off could hurt Asian economies
NEWS UPDATES Asean Affairs     14 October  2011                    

Foreign sell-off could hurt Asian economies

Related Stories

August 11, 2011
Asean economy sound

August 10, 2011
Asean economic ministers meet

July 22,2011
US-ASEAN Business Counci meets in Malaysia

July 6, 2011
Global events make Malaysian interest hike problematic

The International Monetary Fund (IMF) warned that a sell-off by foreign investors in developed markets could trigger a loss of faith in the capital markets in emerging nations across Asia, including Indonesia.

“A sudden liquidation of these positions could trigger a loss of confidence, and contagion could spread from bond and equity markets to currency and other markets,” the fund said in its economic outlook for the Asia-Pacific, released on Thursday.

Since 2009 investors from advanced economies have built up substantial positions in Asian markets, the IMF said. As of this month, foreign ownership in Indonesian bonds is 31 percent of the total, one of the highest rates of foreign ownership in sovereign bonds among Asian nations.

Jeff Tan, head of research at local brokerage Sinar Mas in Jakarta, said that the IMF’s concerns were real. He believed two elements were important for maintaining confidence in Indonesian capital market: the stability of the currency and the supply of dollars.

“If we lose those two ... we can lose market confidence. It will create negative feedback. So, Bank Indonesia has to be vigilant and on guard all the time,” he said.

A combination of capital outflow and the central bank’s intervention has sent Indonesia’s foreign reserves down 8 percent to $115 billion in September from a month earlier. The costly effort helped to stabilize the rupiah, bonds and stocks.

The IMF also trimmed its economic growth forecasts for Asia on Thursday because of financial turbulence in Europe and a possible slowdown in the United States.

Asia’s economic growth is forecast to average 6.3 percent in 2011, rising to 6.7 percent in 2012. That’s lower than the IMF’s April forecast of nearly 7 percent in both years.

Repeating what it had stated in its World Economic Outlook report released in September, Indonesia’s economic growth is projected to slow to 6.3 percent in 2012 from 6.4 percent this year.

The somewhat weaker growth forecast for Asia mainly reflects the deteriorating outlook for exports to advanced economies, the IMF said.

The impact would be smaller for domestic-demand based economies, such as China, India, and Indonesia, and larger for highly open economies that specialize in income-sensitive, high-tech consumer and investment goods, such as South Korea, Singapore, and Taiwan, it said.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    14  October  2011 Subsribe Now !
• Foreign sell-off could hurt Asian economies Subcribe: Asean Affairs Global Magazine
• Asean trade ministers meet Asean Affairs Premium

• Minister welcomes sharia commodity trading

Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• US chamber visits Indonesia
• Skills gap in Philippines labor force
• Singapore growth pegged at 5 percent
• Bangkok prepares for possible flooding

• Japanese ask for accurate weather information


Asean Analysis              14  October  2011

Advertise Your Brand
• Japanese ask for more from Thai government Sponsor Our Events

Asean Stock Watch      14  October  2011

• Asean Stock Watch-October 14 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore • Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand