And the G7 group of industrialized nations pledges to come up with concrete measures to help economies in Asia and elsewhere. To cover massive losses in Russia and Hong Kong and under pressure from banks to repay credit lines, LTCM and other hedge funds unwind bets against the yen. Rates in Asia come down while stock markets climb up. The rally continues. Other currencies, including the rupiah, show remarkable strength too.
Governments take advantage of the benign environment to continue easing tight-fisted policies.
The U.S. cuts interest rates for the third time. The IMF approves a bailout package for Brazil. True, reforms seem on track in many countries, especially Thailand and Korea. But political uncertainty still dogs Malaysia and Indonesia. Asia's gut-wrenching ride looks set to continue in the New Year.