Asia shows strength amid adversity

Hugh Young, manager of Aberdeen New Dawn Investment Trust, examines how Asia's economies have transcended worldwide chaos.

A year ago stock markets were rising and global economic prospects were fairly rosy. Asia’s economies were continuing to lead the global recovery. Europe’s debt problems appeared contained. Suddenly global stock markets have turned down. Developed economies, in particular, appear to be unravelling and there is talk of a double-dip. Households continue to save rather than spend and as a result businesses are reluctant to step up investment. Governments, which had pumped up spending to stave off recession, have hit their spending limits. Bond markets are punishing the weak. America’s AA...