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Asia Better Placed Than Developed Economies, Morgan Stanley Says
Asian economies are in a better position than their developed-world counterparts to absorb shocks from a banking crisis that has roiled global financial markets, according to analysts at Morgan Stanley. “We saw a number of factors which would keep Asia’s domestic demand robust, hence helping in its growth outperformance,” analysts led by Chetan Ahya wrote in a research note. They highlighted strong liquidity coverage ratios at Asian banks and “relatively stable” debt—to-GDP ratios. On top of that, monetary policy is not as restrictive yet as it is in the US, they said. As a result, “the downside risk to ... (full story)