A third hypothesis is that the crisis hit Asia harder because investor sentiment shifted more abruptly than it did in Latin America. In other words, one might be asked - did the crisis somehow reveal comparatively more information about the performance of the Asian developing countries and their economic prospects?
The answer to this question seems to be “yes.” The major revelation - or wake-up call - that transformed the Asian devaluations into first-order crises was the (apparently sudden) realization on the part of investors that the Asian countries were suffering from deep structural imbalances, particularly in their financial sectors. This dramatic shift in sentiment was a central feature of the crisis in Asia.