(This is archived from last weeks strategic brief from the first page of the Asian Business Strategy and Street Intelligence Ezine. For this week's brief refer to the link.)

Last week saw stock markets worldwide continue their dive, but as has been the custom of the past few months, Asian markets took less of a hit. Corporate transparency issues saw the US markets affected in particular, with knock on effects in Europe and Asia. At the same time economic fundamentals in the US, Asia's major trading partner, looked in recovery mode, suggesting a disaffection with stock markets themselves rather than the economy as a whole. The world may well be looking anew at Asian investment, a region that has already learned its lessons in the last 5 years, and where corporate skullduggery is already factored in in strategic investment decisions. However any turn-around in US and European stock markets may see international investment returning to Western markets and away from Asia, and stock market performance dropping from first half record levels.

In Malaysia, the local and international press interpreted by election results as a victory for Mahathir's government. Watch for the Chao Phraya River Rat's next column mid-week, where he argues that while it's business as usual in Malaysia, the battle for hearts and minds in Malaysia is far from over...

Finally, evidence is strengthening that the Asian economic power house of Japan is showing signs of a slow but steady recovery.