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Markets drop as EM woes come together

But observers say economic growth environment still positive, no contagion

[SINGAPORE] Asian markets took fright yesterday, led by declines in Japan, Hong Kong, India and Indonesia, while European markets also dipped. Selling pressure came from a correction in US stock markets last Friday.

Observers said that sentiment about emerging markets remains poor because of country-specific, non-systemic concerns: currency volatility in Argentina and Turkey, a political crisis in Thailand, unrest in Ukraine, and current account and fiscal deficits in countries such as South Africa and Indonesia. In China, concerns over growth and financial stability predominate.

Markets are also awaiting the outcome of a US Federal Reserve meeting later this week. If the Fed decides to cut back...

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