It's all about politics

An unprecedented conflagration of political disturbance is being keenly felt in the region''s economies.

It is a truism to say that when political risk rears its ugly head, investors run for cover. And at the moment, Asia has the most risky political situation seen since the worst days of the crisis. In nearly every country in Asia, political unrest is upsetting the markets and that means financial transactions and secondary markets are suffering.

Including the farce in the US election process, most countries in Asia have specific political troubles as well, all of which have corked the deal pipeline from the region. In the Philippines, Indonesia and Taiwan, three presidents are under the threat of impeachment. This creates political turmoil and a leadership vacuum. Not surprisingly all three...

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