War on Iraq threatens recovery Hong Kong is a relatively light user of oil, but higher prices could hit global demand, tourist arrivals and exchange rates.

(From South China Morning Post)

Byline: Kelvin Chan

The threat of bombs over Iraq has sent crude oil prices to two-year highs. If prices remain at current levels, they could hurt Asian economies, given their high dependence on imported oil.

Higher crude prices will also dampen the global economy as people and businesses spend more on energy and transport and less on other items. But the good news is Hong Kong will probably be one of the least affected markets in Asia.

"Hong Kong is relatively economical as a user of oil," said Michael Kurtz, regional strategist at US investment bank Bear Stearns. "Hong Kong is no longer a manufacturing …