Flash: Implications for Asian economies and markets

FXstreet.com (Barcelona) - Following the Summers shock, investors in Asia may start to wonder what this all means for their portfolios, and whether the outflow of capital seen recently continues at the same pace or a temporary pause is observed.

In view of Nomura Economists, "as expectations adjust to less aggressive Fed tapering, this should reduce the immediate risk of significant capital outflows from Asia, providing significant relief for those economies with current account deficits that have faced balance of payments pressures – notably India and Indonesia, and to a lesser extent Malaysia and Thailand."