Currencies could weaken again under renewed speculation fueled by cheaper capital. And the yen could weaken and drag down other Asian units. For many of East Asia's policymakers, the main threats are external. But most private economists think the half-percent figure is too high. Japan's recession is deepening.
Many major corporations expect huge losses.
The Bank of Japan's Tankan survey of large manufacturers, a key indicator of future economic growth or decline, fell to its lowest level since February 1994. The economy is in deflation. That's just another reason for fading hopes that Asia might export its way out of the Crisis. Add to the worries a U.S. slowdown and a fledgling rebound in Europe. Another country investors are watching closely is Malaysia, which imposed currency controls to shelter its economy from speculators.