This is reflected in financial assets that fluctuate less than, for example, comparable U.S. and European assets. Countries with large fiscal and current account deficits mainly financed with short-term capital flows (e.g. Eastern European, unlike Latin American and Asian countries) are the hardest hit.
In the process, those deeper markets used for hedging purposes, including ones in Hong Kong, Australia, Brazil, and Mexico, suffered their own downdrafts at the peak of the Asian crisis.