Global issues such as the economic downturn were traditionally dealt with within the G7 or G8, within strong, wealthy countries who had the ability to bail the rest of the world out. Well, in the last few years, the tables have turned and its now stalwart, energy rich emerging countries such as China and India that the world is looking to. In fact, the International Monetary Fund has approached Asian nations Japan and China to contribute substantially to the bailout fund, aimed at helping lesser developed countries out of the financial crisis.

At the recently concluded G20 summit in Washington, the global community made a clear resolve to broad base the decision-making structures of international finance to include major emerging markets like India and China. A clear signal that emerging Asia has arrived on the global political and economic stage. Read the rest of this entry »

Just days prior to the G20 summit this weekend, top executives at some of the world’s largest private equity firms that met in Hong Kong, Asia’s commercial capital agreed that Asia has surpassed the U.S. to become the world’s most attractive place for investment.

TPG Capital’s David Bonderman and Carlyle Group’s co-founder David Rubenstein, both told Reuters that while getting hit by the financial crisis, Asia was well suited to withstand it, thanks in part to banks’ relative lack of exposure to risky sub prime mortgage securities which sparked the global financial crisis.

Edgerley, Bain’s Managing Director was optimistic too, saying the region was in a better position to weather the financial storm, based on the growth of its consumer market and burgeoning middle class. Bain’s Asia focus is on China, Japan and India he told Reuters.

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Luxury Italian brand Versace expects Asia to overtake their US market, reigning second place in terms of revenue and investment, after Europe. Hoping that the financial crisis will not dampen consumer sentiments in Asia, Versace CEO Giancarlo Di Risio told the Wall Street Journal in Beijing on Wednesday, “Our plan for Asia [was] set two years ago,… We are sticking with that plan….By 2009 [Asia] will be our second largest market after Europe.”

The company plans to invest 45 million euros (US$56.5 million) to strengthen its presence in Asia and is opening 11 new stores this year — nine in Hong Kong, Macau, Taiwan and China, and two in Europe, including a home furnishings store in Milan.

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Even though Asia hasn’t been affected by the financial crisis as much as the United States or Europe, foreign investors are still shy to bank their money in the region. A recent Reuters analysis on central bank data pointed out that foreign exchange reserves in Asia (excluding China) plummeted by US$119 billion in October to US$2.34 trillion.

India led the fall, dropping forex reserves by US$38.9 billion, while South Korea marked a drop of US$27.4 billion. Singapore, Malaysia, Indonesia and Pakistan were other countries in the region which reported a decrease in their forex holdings as compared to the same time last year. China, holder of the world’s largest reserves, releases data at the end of every quarter.

Foreign investors have sold US$63 billion worth of shares in Asia ex-Japan so far this year, led by the sale of US$33 billion in South Korea, nearly US$14 billion in Taiwan and almost US$12 billion in India, Reuters quoted Nomura.

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Thaksin Shinawatra, the deposed Thai Prime Minister facing corruption charges and an imposed two year jail sentence in his own country, has arrived in Beijing following a decision by the British authorities to revoke his visa. Thaksin has been in the UK seeking political asylum since the coup that saw him deposed. His British visa was revoked as soon as he left the UK on a business trip, further confirming concerns that his asylum request was based more on avoidance of corruption charges than political differences.

Thaksin, who earlier in the year had purchased Manchester City football club, was forced to sell it to an Arabic consortium after the bulk of his assets were frozen by Thai prosecutors. Passing by China was originally a stop over en route to the Philippines, were he has also applied for asylum, a move that the Philippine government has said would be rejected if requested. This leaves Thaksin holed up in Beijing until he can find an alternative sanctuary or is unable to renew his Chinese visa.

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With bilateral trade between India and China escalating beyond the 2010 target of US$40 billion this year, amidst the global crisis, senior officials in the Indian commerce department are worried that excess stocks of mass produced Chinese goods, might wash up on Indian shores.

Recently, an Indian manufacturer of Penicillin-G - Alembic Ltd, demanded an investigation into alleged dumping of Penicillin-G from China. According to the Hindu, the Vadodra based chemical company sought to argue that China being a non-market economy the normal value of the product is to be determined on the basis of prices in India after deducting the customs duty applicable for the period of investigation (PoI). The applicant stated that there is sufficient evidence that the normal value of the subject goods in China is significantly higher than its net export price, essentially indicating that “the subject goods are being dumped by the exporters” from China.

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The Himalayan Kingdom of Bhutan, crowned its fifth King on Thursday. Oxford educated, 28 year old Jigme Khesar Namgyal Wangchuck became the worlds youngest King. Jigme was coronated by his father, as Druk Gyalpo, or Dragon King at precisely 8:31 am local time, a time deemed auspicious by court astrologers.

Asia’s vast lands, boast varied governing systems ranging from absolute monarchies to democracies and dictatorships. However, the fairytale world of modern day monarchs who today wield little power in their lands will always carry an air of mysticism. Although they still command the respect and loyalty of their people they live in a world quite different from their subjects surrounded by large manicured palaces, golden chariots and the best silks money can buy.

However its not a bygone era, the Asian region still plays host to numerous monarchs - while Jigme was crowned the youngest King, neighboring Thailand celebrated their king as the longest reigning monarch in 2006. Another Himalayan kingdom of Nepal, only recently renounced its 239-year-old Shah dynasty replacing it with a republic. Additionally in 1975, Laotian King Savang Vatthana, abdicated his throne to communist Pathet Lao, backed by the Soviet Union and the North Vietnamese Army. Japan, Brunei, Malaysia and Cambodia still maintain monarchies.

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Asian markets rebounded optimistically on Wednesday as news of Obama’s victory resounded across the continent. The Nikkei climbed nearly 4.5 percent by the closing bell, while the Hang Seng shot 5.7 per cent, or 812.53 points, higher. The Shanghai exchange jumped more than 4 per cent, and the Korean Kospi finished 2.4 percent higher. Singapore’s Straits Times index progressed by 2.1 percent. The only two markets to fall yesterday were Taiwan’s Taiex index which dropped 0.3 percent and the Bombay Stock Exchange’s Sensex index which fell by 4.8 percent on Wednesday, to 10,120.01, snapping a five-day gain.

The markets however might not echo the skepticism of Asian governments. Most East Asian governments are weary of Obama’s protectionist trade policies as well as tougher environmental and labor regulations.

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Off the Southeastern coast of India, nestled amongst azure lagoons and coral atolls, the Maldives, recently witnessed their greatest political change in decades. Asia’s longest-serving ruler, Maumoon Abdul Gayoom conceded defeat to his rival, 41-year-old Mohamed Nasheed in the island nation’s first presidential election.

Nasheed, who was imprisoned more than a dozen times by the quasi dictator Gayoom, won 54 percent of the votes, wiping out Gayoom’s 30 year regin on the archipelago nation. In his acceptance speech later, Nasheed, also dubbed by his party as the “Mandela of the Maldives”, told the Independent: “I wish to assure the public and the international community that the transition to democracy in the Maldives will be smooth and uninterrupted in governance. We would want to introduce greater democracy. More freedoms. Freedom of expression.”

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Some are for Obama, others McCain. Who wants which?

It’s not really our job here to cover U.S. politics, however, given that the American elections do have an impact on future policies, trade, disputes, on all countries globally, we’d like to share with you a fascinating piece, courtesy of the Guardian which details the political position, and desired candidates of several countries, and key among them the Asian and Central Asian capitals of Beijing: “America is going down while China is rising up;” Kabul: “Whoever wins must bring a new leadership;” Moscow: “We don’t beg from the west any more;” and Lahore: “McCain understands the Pakistan reality better,” amongst others.

It’s a great, insightful piece and you can find it on their website here.