Emerging Economies and China

Tokyo Europe Investors: The damage has spilled across oceans, with the turmoil jolting investors in New York, Tokyo and Europe, according to The Japan Times. Investors worry that China and other major emerging economies will reduce their imports. Success stories until recently, emerging economies are seen as casualties now — of slower growth in China, plunging prices for commodities like oil and iron ore, the prospect of higher U.S. interest rates and homegrown threats. They also fear a trade-disrupting currency war as countries desperately lower their currencies’ value to gain a competitive edge. The Dow Jones industrials plunged 530 points, more than 3 percent, Friday on top of a 358-point drop Thursday. A lower-priced currency makes a country goods cheaper for foreigners. (news.financializer.com). As reported in the news.