For much of this year, the economies of the Asia-Pacific region appeared to be blissfully isolated from the turmoil in other parts of the world. Asian stock markets fell along with those in the rest of the world, but the region’s economies continued to power ahead.
Within the last few weeks, however, cracks have emerged in the region’s mighty economies, and analysts and policy makers have become more concerned about the painful disruption that could spill into Asia as the situation in Europe continues to deteriorate and the United States’ growth remains subdued.
Exports from Asia have been softening for months as demand in Europe, in particular, has slowed. Although many countries depend less on exports than they once did, the sector remains crucial for economies like those of Taiwan and South Korea and for the small, open economies of Hong Kong and Singapore, economists say.
“The potential risks for Asia have increased” as the European crisis has moved beyond small peripheral economies like Greece, enveloping larger countries like Italy, Spain and even France, said Frederic Neumann, co-head of Asian economic research at HSBC in Hong Kong.
The spreading economic troubles were underscored Wednesday when a closely watched gauge showed Chinese manufacturing contracting. The reading, published by HSBC, dropped from 51 in October to 48 in November, the lowest level in nearly three years and much lower than economists had expected. A reading of 50 is the line between expansion and contraction.
The decline fanned worries about the spillover of the West’s problems into Asia. But it also reinforced nervousness about the effect in the opposite direction: the West increasingly needs a strong Asia to buy its goods as consumers elsewhere stay on the sidelines.
“Europe is now where the United States was three years ago: The economic contraction is only just beginning,” said Pranay Gupta, chief investment officer for the Asia-Pacific region at ING Investment Management in Hong Kong.
So far, the economic pain in Asia has been relatively muted, and much of the region remains on course for strong growth.
The Chinese economy is set to expand 9.5 percent this year, according to projections from the International Monetary Fund in September. India is expected to grow 7.8 percent, Indonesia 6.4 percent, and many other Southeast Asian nations more than 5 percent, the I.M.F. estimates.
Those figures, however, are generally below the growth rates seen in 2010, and are likely to ease off further next year, the I.M.F. and most economists say.
Reacting to the worsening global environment, Indonesia and Australia have lowered interest rates in recent weeks. Most other central banks in the region have put off rate increases that seemed likely only months ago fears about growth replace inflation concerns.
In Japan, the pain has been compounded by the results of the devastating earthquake and tsunami in March and by the persistent strength of the yen. Fanned by the economic difficulties in other parts of the world, the currency’s rise has made Japanese goods more expensive for shoppers abroad and has helped dent exporters’ profits.
With interest rates already at rock bottom, the government has resorted to direct intervention in the currency markets — selling yen for dollars — four times in little more than a year in its effort to weaken the yen.
In the financial sector, meanwhile, banks like HSBC, UBS and Nomura are cutting jobs around the globe. And although many banks would like to grow in the Asia-Pacific region, financial centers like Hong Kong and Singapore have not escaped the hiring freezes and job cuts.
“There are still pockets of hiring in the Asian financial sector, but it has got a lot tougher in recent months,” said Matthew Bennett, managing director at the recruitment firm Robert Walters in Hong Kong.
Article source: http://feeds.nytimes.com/click.phdo?i=6c7ec3db5b95d515e0d97918257748c5
Jordan Blocks Local Access to 300 News Web Sites
The law, enacted in September as the opposition to King Abdullah grew more outspoken, requires news sites in the country to register with the government, pay $1,400 in licensing fees and hire unionized journalists as editors, steps that the site operators say they cannot afford. The law also makes editors legally responsible not only for the content of articles they publish, but also for comments posted by readers, many of them anonymous.
“Actions in the past and now clearly demonstrate that they do not believe in press freedom,” Nidal Mansour, head of the Center for Defending Freedom of Journalists, said of Jordan’s leaders. “It’s a global world, and Jordanians should have the right to access Web sites that people in the rest of the world already do.”
Hundreds of news sites have sprung up in recent years in Jordan. Many of them include commentaries critical of the government, and some have published documents detailing the activities and spending of the royal family.
A spokesman for the Ministry of Information said last fall that the new law was intended to professionalize and institutionalize the robust new industry, and to rein in comments that insulted public figures. Abdullah Ensour, the Jordanian prime minister, said Monday that he “had no choice but to implement the law.”
Access to roughly 300 sites was blocked starting on Sunday, when Jordanian news outlets were highlighting a paper issued by the king titled “Towards Democratic Empowerment and Active Citizenship.” About 80 people demonstrated in protest outside the journalists’ union on Monday, carrying signs saying, “No to the muzzling of online media.” There were plans for another demonstration outside Parliament on Thursday.
Ninety-two Web sites that registered with the government continued to operate as usual. The sites that were blocked in Jordan remained available to Internet users outside the country. Some of them, like the popular site jo24.net, set up ways to get around the access blockage and alerted subscribers by e-mail.
Daoud Kuttab, who founded one of the first of the sites, AmmanNet, 13 years ago, said he was posting news on Facebook and on other Web sites his company owned that were not affected.
“The information we have will be available to the public somehow,” Mr. Kuttab said in an interview, adding, “It is a sad day when a country wants its people to hear things only from the government’s perspective.”
Rana F. Sweis reported from Amman, and Jodi Rudoren from Jerusalem.
Article source: http://www.nytimes.com/2013/06/04/world/middleeast/jordan-blocks-local-access-to-300-news-web-sites.html?partner=rss&emc=rss