STUMBLING GIANTS

ASIA'S MALAISE SPREADS TO JAPAN AND SOUTH KOREA. IT COULD POSE THE MOST SERIOUS THREAT YET TO U.S. PROSPERITY, FROM MAIN STREET TO WALL STREET

First came the Asian Miracle, as booming Pacific Rim countries showed the rest of the world how to grow. Now comes the Asian Meltdown, as turmoil across the region shakes markets from Hong Kong to Wall Street. Last week it was Japan and South Korea that gave the world a jolt. No sooner had rumors of a possible South Korean collapse swept out of Seoul than the Japanese yen and the Tokyo stock market plunged to their lowest levels in two years. Across the Pacific, the ill winds from Asia blew the Dow Jones industrial average into a 157-point drop on...