TOKYO - Financial leaders from Japan, China and South Korea on Thursday warned of risks to Asia's economic recovery from the Covid-19 pandemic and committed themselves to backing market stability and sound fiscal policy.
The Japanese, Chinese and South Korean officials affirmed their commitment to using support measures, which they did not specify, for maintaining financial market stability and long-tem fiscal sustainability. The statement made no mention of specific countries. But US interest rate rises and related reduction in central bank assets have driven up the dollar. This has raised the prospect of capital flight from some emerging markets and a rising burden of dollar-denominated debt in the developing world.
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