While the data is bad for the two countries and the global economy, it actually is good news in the short term for the stock markets of emerging economies, Malaysia included. It means the tapering of quantitative easing (QE) could be delayed or slowed. That will in turn delay the rise in US interest rates and the outflow of foreign portfolio funds from this region.
The above forms part of The Edge weekly update on The State of the Nation. Read the full article in the upcoming Edge.