Stagflation-Free Asia Is Leaving Taper Tantrums Behind

Southeast Asia specifically is displaying some macroeconomic resilience, with manufacturing PMIs signaling growth throughout these nations, a distinction to the contractions for South Korea and Taiwan. The troubles afflicting north Asia — particularly the behemoths of China and Japan — could possibly be the area’s Achilles’ heel. JPMorgan’s metrics for judging nations’ vulnerabilities, based mostly on present account ranges, foreign-exchange reserves and yield buffers, present Thailand and Japan are among the many weakest, with China, South Korea and India within the next-weakest tier.