Posted by Micheal Teo > 2013-08-22 02:40 | Report Abuse

Well written article Mr.Tan KW. I presume u r an economist or accountant by profession.

Posted by wm83 > 2013-08-22 08:53 | Report Abuse

worrying... 98 97 crisis

Posted by JTFX > 2013-08-22 08:54 | Report Abuse

Tks TKW..good article highlighting the current risks in the mkt..KOSPI n Nikkei now -1%..following DJ overnite after Feds minutes...

Posted by JTFX > 2013-08-22 09:04 | Report Abuse

rough ride ahead..RM now 3.32..look for 1700 support...

Posted by JTFX > 2013-08-22 14:51 | Report Abuse

Emerging markets again bore the brunt of the selling as many have come to rely on cheap dollars to underpin domestic demand and fund current account deficits.
Currencies in Indonesia, Malaysia and Thailand all hit multi-year lows, while the Indian rupee ploughed another historic trough.
Their stocks markets likewise all fell between 1 and 2 percent, while the MSCI index of Asia-Pacific shares outside Japan shed 1.1 percent to a six-week low.
Driving the flight of funds were minutes of the Federal Reserve's July policy meeting which showed it was still on track to start tapering stimulus as early as next month.
Treasury yields tend to set the benchmark for borrowing costs across the globe, so the rise will make it more difficult for indebted countries and companies to pay their bills.
Expectations of economic recovery in the United States and Europe also tends to make assets there more attractive, heightening the competition for global savings.
"Given that the recent capital outflows have been mainly triggered by yield differentials, the higher Treasury yields mean that there is unlikely to be a quick turnaround in Asian currencies, especially those economies with current account deficits," said Frances Cheung, a strategist with Credit Agricole in Hong Kong.
She listed India, Indonesia, Malaysia and Thailand as the most vulnerable. "The story about capital outflows could persist for a while."
India's rupee promptly slid past 65.00 per dollar for the first time ever, while the Indonesian rupiah hits its lowest since 2009.