Asia's role as the world's growth engine is waning as economiesacross the region weaken and investors pull out billions ofdollars.

The Indian rupee fell to a record low yesterday, Thailand is inrecession, and Indonesia's widest current-account deficit pushedthe rupiah to the lowest level since 2009. Chinese banks' bad loansare rising, and economists forecast Malaysia will post its secondstraight quarter of sub-5 percent growth this week.

The clouds forming in Asia, as liquidity tightens and China'sslowdown curbs demand for commodities and goods, are fueling aselloff of emerging-market stocks, reversing a flow of money intothe region in favor of nascent recoveries in the U.S. and Europe.Emerging markets from Brazil to Indonesia have raised borrowingcosts in 2013 to try to aid their currencies as the prospect ofreduced U.S. monetary stimulus curbs demand for assets indeveloping nations.