Asia quake fails to impact shares

Despite a multi-billion dollar repair bill for the Indian Ocean earthquake, whose Tsunamis destroyed resorts and coastal assets across at least ten countries and killed at least 100,000 people, Asian stock markets continued upward surges.

Stock exchanges in India and Indonesia - two countries particularly affected - broke records in what has been a rich year for share prices.

Even Sri Lanka, particularly badly hit, even a loss of 5% on its stock markets still leaves share prices 40% higher than at the start of 2004.

So far traders and investors in Asian markets appear to be reasoning that many resorts were in developing areas, so no major economic centers nor essential national infrastructure have been lost. And even short-term loss of tourist spending in the worst affected areas is expected to be offset by major government investments in construction projects.

However, despite trader expectations, the World Bank has advised caution in gauging the actual longer term economic impact of the disaster, pointing out that it’s overall magnitude has still not been properly assessed.

Asian markets are still recovering from crashed tiger economies in the late 90’s.

Link: Asia quake fails to impact shares