ASIAN GROWTH TO STAY ‘ROBUST', SAYS ADB CHIEF

Asia's economies remain on course for “robust growth” next year in spite of the financial crisis and looming recession in Europe and the US, according to Haruhiko Kuroda, president of the Asian Development Bank.
Mr Kuroda said in an interview that “we can still expect around 7 per cent growth next year” across Asia excluding Japan. “That means Asia is still going to achieve relatively robust growth,” he said.
The Asian lender last month cut its 2009 growth forecast for the region from 7.8 per cent to 7.2 per cent. Since then, however, the global financial crisis has spread to Asia, forcing South Korea to announce an emergency $130bn (€100bn, £80bn) plan to bolster its banking sector.
China has also announced steps to boost its property market and help exporters following an unexpectedly severe slowdown in the third quarter. BHP Billiton said yesterday that demand from China, its largest commodities customer, had “softened” in the three months ending in September.
In another sign of slowing economic activity in Asia, Singapore-based Neptune Orient Lines is cutting capacity on key trading routes, including those to Europe.
Mr Kuroda said Asian banks remained “well capitalised”, with a ratio of non-performing loans to assets of less than 5 per cent. He praised the authorities in the most open financial markets – South Korea, Hong Kong, Singapore and Malaysia – for confidence-boosting pledges, including guarantees for bank deposits.
“They have taken appropriate measures very proactively and I am sure that those are having a positive impact,” he said.
In spite of Mr Kuroda's confidence, Asian stock markets plunged yesterday, with falls of more than 5 per cent in Tokyo, Seoul, Singapore and Hong Kong, where the Hang Seng index closed at a three-year low. Analysts said concerns were shifting from banks to manufacturing sectors such as the semiconductor industry, which has shocked investors this week with several profit warnings.