Trade decline no cause for concern

The downturn in regional trade should not place Asian currencies under pressure, Salomon Brothers says.

Andrew Freris, chief regional economist, said causes for the pan-Asian decline in exports had to be found in individual countries.

Mr Freris disputed the notion that there was a common trend arising from a loss of competitiveness. 'The unifying theme in this case is that there is not any,' he said.

For Hong Kong, the export slowdown in the first half of this year was mainly caused by short-term contraction in demand and tensions across the Taiwan Strait.

The territory's export growth slowed to a nominal rate of 4.9 per cent in the first seven months.

This compares with 14.9 per cent for the corresponding period last year.