by Tanta on 8/16/2007 07:06:00 AM

Reuters, "Asian central banks patrol as credit fears rise":

SINGAPORE/HONG KONG (Reuters) - Asia Pacific central banks and financial chiefs kept a tight watch on money markets and attempted to reassure investors on Thursday as fears of a worsening global credit storm gripped the region.

There's a degree of panic over the uncertainty induced by the subprime sector in the United States," said P.K. Basu, Singapore-based chief economist for Asia ex-Japan at Daiwa.

"The economic fundamentals in Asia are very sound. However, the final residing place of these CDOs (collateralized debt obligations) and the derivatives issued on the subprime mortgages is difficult to predict."