Asian investors are suffering from a bout of déjà vu following the rout in the Asian region’s equity markets at the beginning of August.
Stock market turmoil caused by the effects of the concerns over the European sovereign debt crisis, the prolonged US budget discussions and the subsequent credit downgrade of the US caused the region’s markets to lose as much as 10 per cent of their value in the first week of August.
In much the same way Asia’s markets and investors were severely affected by the global financial crisis which did not begin in Asia, so it seems that the current crisis threatens to undermine investor confidence in Asia again.
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