The worst of the Asian crisis is over - at least for most of the region's financial markets, according to strategists and economists.
Reviewing ex-Japan first-quarter performances, they said that most share prices and currencies hit bottom in January, then surged strongly as confidence started to return and International Monetary Fund reforms and financial support started to kick in.
Daiwa International Capital Management regional strategist Peter Perkins said: 'The sharp bounce was a first-quarter phenomenon. The key to it all is values in US dollars. We believe that [January] was the bottom but there will not necessarily be a smooth ride up from here.' The upswing has transformed some of Asia's equity indices from among the world's worst performers to some of the best. Thailand - the first domino to fall in July last year - and South Korea have shown dramatic gains.
Bangkok's SET Index climbed 23.19 per cent in domestic currency terms, while in US dollar terms it has risen 51.37 per cent. At the height of the crisis in mid-January, US$1 bought 55 baht; yesterday, it fetched 39.
Korean stocks added 28.23 per cent in won terms, and 48.24 per cent in dollar terms.
Hong Kong's performance over the quarter places it at the lower end of the region's gainers, with the Hang Seng Index rising 7.42 per cent. As the peg remains in place, the US dollar figure is almost the same.
