There have been mergers in the global oil, tobacco and automobile sectors. In Asia, we have seen an incredible number of acquisitions in cement. Multinationals like Holderbank, Blue Circle and Cemex can recycle surpluses in Asia to meet demand elsewhere. Asia's real economies may not recover fast enough, with unemployment still rising, consumer spending still falling or remaining stagnant, and companies still going bankrupt. But restructuring enables companies to increase their returns, and this would continue to drive the markets higher.
Increased efficiencies create the conditions for the next growth phase.
The real test is whether global demand will flow through at the end of this year or early next year. If this does not happen, especially if U.S. demand slackens at a time when Asian unemployment is touching its peak, there would be some further problems and pain. As restructuring proceeds, South Korea is starting to look very attractive. It is also benefiting from the strengthening of the yen. Korea will probably have a flatter first half, but a good second half.