No new year cheer for Asia

Morgan Stanley Research says China needs to initiate stru ctural reforms to transition towards higher valued-added economic activities, accelerate the fiscal transfe rs towards social security and boost private consumption. – AFP

THE outlook for Asia's economies remain very much in the balance even as growth momentum bottomed out in October with an improvement in external demand, purchasing managers indices and factory output.

Growth continues to be weighed down by concerns over the looming US fiscal cliff (simultaneous tax increases and spending cuts mandated by law to rein in the budget deficit) and the recession in Europe.