Stagflation-free Asia leaving taper tantrums behind as currencies fare well

The foreign-exchange stockpiles Asian economies built up have helped cushion the impact of this year's market turmoil, which has spurred the largest equity outflows for at least a decade.

It’s time for emerging Asian markets to reap the rewards after years of building up foreign-exchange reserves, as they become the latest destination for risk investors.
 

While no market has come through 2022 unscathed, countries from Indonesia to South Korea and the Philippines are reaping the rewards of a quarter-century preparing for a repeat of the turmoil that set off the Asian financial crisis in the late 1990s. Even as the dollar rallied, emerging Asia’s currencies are mostly faring better than traditional havens like the yen and the euro. The region’s bonds are standing out as a rare bright spot