Which Asian countries can survive a US downturn?

Asia's economic recovery has beaten all previous records. But the continent is not isolated from the rest of the world. And now fears of a double-dip recession in the West are growing as key economic indicators turn down. Here, Cris Sholto Heaton looks at how a slump in the US would hit Asia, and which countries are likely to fare the best.

Asia central banks are rapidly moving ahead of their global peers. In the last couple of weeks, Korea, Taiwan, Malaysia and India have all raised interest rates. Thailand and the Philippines could follow as soon this week. Meanwhile, the Fed, the Bank of England and the European Central Bank remain firmly fixed on their emergency ultra-low rates.

In some countries notably India this is an attempt to deal with inflation problems that could get out of hand. But generally, inflation is not yet an issue in most of Asia's economies. Instead, higher rates reflect growing confidence in a recovery that has beaten all previous records.

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Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.