IMF head: "Signs of South Korean recovery"

The managing director of the International Monetary Fund, Michel Camdessus, says there are early signs of a financial recovery in South Korea.

But Mr Camdessus -- speaking at the end of a two-day visit to Seoul -- said the country still had a long way to go before, as he put it, the war was won.

South Korea's financial system came close to collapse last year.

Meanwhile, share prices have surged in Hong Kong, leading to a recovery in Asian markets -- primarily Indonesia, Singapore and Malaysia.

Speaking in Indonesia, a United States envoy said President Suharto recognised the need to take what he called strong steps to overcome the country's economic crisis.

From the newsroom of the BBC World Service