IMF declares Asian economy is rebounding fast, even as shares tumble


Asian markets fell Thursday, even as the International Monetary Fund declared, "Asia is rebounding fast from the depths of the global crisis," in its Regional and Economic Outlook report released today. China's Shanghai Composite Index fell 2.3 percent to close at 2,960, Hong Kong's Hang Seng Index dropped 2.3 percent, ending the day at 21,265 and in Japan the Nikkei Index shed 1.8 percent, closing at 9,891.

The report warns that Asia will, "Need to manage a balancing act," by continuing the economic stimulus that has supported the recovery for just long enough that the economies become self-sustaining without triggering inflation. The report also emphasizes the link between American consumption and Asia's growth, cautioning that a slowdown in U.S. buying would still have an enormous impact on Asia. And it seems it is that out-sized consumption that has left Asia positioned so strongly: according to the report, "Asia has boomed as America's consumption outpaced its income."