The United States has sneezed but Asia is unlikely to catch a cold. Allowing for some variation in the detail - whether China's stock market is due for a correction for example - this is the broad consensus in final quarter forecasts from analysts for the region's economies and financial markets.
'The key reason is that China is building up strong domestic consumption power which is another engine for global economic growth,' Oscar Leung, senior investment manager at ING Investment Management, tells Net Worth.
Alfred Mak, head of private banking at AIG Private Bank Hong Kong, agrees. 'Markets will remain unsettled and trading will be volatile, but we believe the latest events will have only a limited impact on real economies in the region because the world economy remains strong and global growth has never been as balanced as it is today,' he says.
Most analysts share the view that economic growth in the US will falter but not spread contagion through Asia's financial markets.
UBS Wealth Management (HK) managing director and chief regional economist Pu Yonghao says: 'On the macro side, obviously the US is slowing down. Factory orders, the housing sector and some consumer spending are all showing signs of deceleration.'
But pre-emptive intervention from the US Federal Reserve will probably ensure the US economy remains on the rails and financial systems continue to function, he says. 'Which is why globally we still call for overweight equity and see higher returns from equities than bonds.'
