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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Jules V who wrote (37614)	10/25/1997 2:15:00 PM
From: Jules V	Read Replies (1) \| Respond to of 186894

Found some clues to my question here. Could be both good and bad news for US mkts: afr.com.au Professor Hai says China's policy-makers are "seriously watching" how China's exports might be affected by the crisis in South-East Asia. There, currencies have been forcibly devalued by as much as 50 per cent. This makes their exports much cheaper and therefore more competitive. "Our export growth will slow," says Professor Hai. "China will want to depreciate." Jardine Fleming's Douglas Eu agrees. Both predict it could happen next year. If so, this is likely to force Hong Kong to abandon its precious peg after all. Hong Kong might end up with the worst of both worlds -- it might force its economy into recession to defend the peg, only to have China force it off the peg next year anyway, starting a whole new round of dislocation. With these effects flowing through these big economies of North Asia, a global deflationary impulse has been set up. Citibank's Erskine explains: "If you have a factory in Texas and a factory in Asia and you want to increase production, where will you do it? In Asia, because it has now become so much cheaper, or you will use that advantage to cut prices. "So job growth will swing to where there's most spare capacity -- and that's Asia. And when the workers in Texas demand higher wages, they'll find their jobs will just disappear." >> I saw a stat somewhere that 26% (incl Japan) of Intel business was Asia-Pacific so whats the potential from all this.