The International Monetary Fund (IMF) reported on Friday that the February-March turbulence in the world stock markets was triggered by investor nervousness about U.S. economic growth.

Unlike the previous episode, the recent turbulence, which started from the Asian stocks, was "triggered by investor nervousness about U.S. growth, rather than inflation," said the Asia Pacific Economic Report released by the IMF.

"This underscores the market perception that the (Asia Pacific) region's fortunes are still closely linked to external conditions, particularly those in the U.S.," the report said.

But it said that Asian financial markets, which experienced the first wave of the sharp drop at the end of February, fared relatively well in the turbulence, and sentiment toward the region remains strong.

"As was the case in May-June 2006, the recent turbulence was seen as a correction," said the report.

"Looking ahead, Asia's high growth and solid fundamentals point to continued investor interest in the region including both direct and portfolio investments," it added.

But the IMF also warned that there were some risks to the favorable Asian outlook, especially the uncertainty of the U.S. economy.

"While global growth has become more balanced, the main risk remains uncertainty surrounding U.S. growth prospects," it said, adding that the potential for spillovers from the United States into consumption and Asian exports is still a key concern.

Source: Xinhua