"Asia is set to lead the world out of the global financial crisis in spite of the slow recovery in the US and Europe, according to the latest forecasts by the Asian Development Bank (ADB). In a dramatic contrast to its view in March, when it slashed 2009 growth forecasts for Asia, excluding Japan, from 7.2 percent to 3.4 percent, the ADB on Tuesday said the region would grow more strongly than expected both this year and in 2010...." [Financial Times]

The Wall Street Journal adds that "...the institution revised its gross domestic product (GDP) growth forecast for developing Asia for this year to 3.9 percent... and it revised its GDP growth forecast for next year to 6.4 percent from 6.0 percent. The bank said developing Asia is proving to be more resilient to the global downturn than was initially thought. 'Nevertheless, there is no room for complacency, and the region's nascent recovery faces downside risks,' the ADB report said...." [The Wall Street Journal/Factiva]

The NYT writes that "...at a news conference on Tuesday in Hong Kong to release the report, ADB Chief Economist Jong-wha Lee called for a series of measures like encouraging more long-term foreign investments and strengthening demand for Asia to limit the region's reliance on exports. But he was cautious when asked whether Asian governments should slow their heavy intervention in currency markets.... Lee encouraged China to allow more 'flexibility' in its currency, which closely tracks the dollar and has plunged with the dollar this summer against the euro and many other countries, but he stopped short of saying that flexibility should lead to appreciation...." [The New York Times/Factiva]