Dashed hopes that Asia will soon begin economic rebuilding are contributing to weakness in United States markets. US markets were able to pare most of their losses in late trading on Wednesday, as investors seized the chance of buying shares at two-month lows. Nevertheless at the close of trading, the Dow Jones Industrial Average was down 1.95 per cent on the week, and analysts believe the volatility reflects growing concerns Asian woes will eat into US corporate earnings and cause interest rates to rise. At noon yesterday, the Dow was 17.94 points higher at 8,954.51. Merrill Lynch chief market analyst Dick McCabe said: 'It is obvious that renewed concerns for economic and political developments in Asia are being acted upon as a catalyst for weakness in the US market.' He said US investors had become complacent about the impact of Asian markets as expectations rose of a turnaround after the lows in October last year. Indonesia's troubles and gathering evidence of economic contraction in even the relative safe havens, such as Hong Kong, have shaken their complacency. A warning from Boeing that the Asian downturn could slow orders highlighted concerns. Credit Suisse First Boston director of economic research Dominic Konstam said investors had put too much faith in the International Monetary Fund. 'We now know it [Asia's economic malaise] is not going to go away in a month and could take a decade. This is worse now than it was in October.' However, he said there was no panic - and a feeling even existed among some players that the 'US juggernaut' could roll on - despite ill-ease about an over-extended US market. Adding to the concerns about the threat of a substantial market correction are the minutes of the Federal Reserve's Open Market Committee meeting in March which confirmed suspicion the Fed is biased towards a tightening of interest rates.