Economic woes testing South-east Asia reserves, defences

Jakarta

SOUTH-EAST Asia has spent the best part of two decades shoring defences against a repeat of the Asian financial crisis, including building up record foreign exchange reserves, yet is now feeling vulnerable to speculative attacks again.

Officials are growing increasingly concerned as souring sentiment has made currencies slide and investors reassess risk profiles in an environment where China is slowing and US interest rates will rise at some point.