Asia will tide over subprime crisis: S&P

Global ratings agency, Standard & Poor's today said Asian economies would be able to weather the current turmoil in the global equity and credit markets caused by US subprime crisis.

"The risk of further hedge fund closures or failures is certainly real, and investors and lenders are tentative when the extent of the risks and losses are unclear. Likewise, any significant and prolonged decline in asset and market valuations could also sap confidence. However, while economic activity and confidence remain robust, the Asian economies are likely to get a little wet but will not be blown off course," S&P said in a research note. Most policymakers in these economies appear to have learnt their lessons from the 1997 Asian financial crisis, and an overview of Asian countries shows few signs of apparent weaknesses.