'Asia faces asset bubble threat'

SINGAPORE: Developing Asian economies face the risk of asset bubbles or overheating as the region's growth outpaces the rest of the world this year, the World Bank said.

Developing East Asia, which excludes Japan, South Korea, Singapore and China's Taiwan and Hong Kong, will expand 8.1 percent this year, faster than a November estimate of 7.8 percent, the Washington-based lender said its Global Economic Prospects report. South Asia will grow 7 percent in 2010, it said.

Asia is leading a recovery from the deepest global recession since World War II after policymakers cut interest rates and governments announced more than $950 billion of stimulus measures. Some Asian central banks are already raising borrowing costs or taking steps to remove the excess cash in their banking system to fend off inflationary pressures.