Modern investors prefer to invest globally, especially in the emerging economic potboilers of Asia. One of the crucial steps to take before investing globally is to study the value of the attractiveness of the foreign stock market. As the P/E ratios change every day, the specifications of single stocks can be misleading at times. GDP growth, trade numbers, debt-to-GDP ratios, and credit ratings by reliable agencies are the major prospects to consider before investing.
Japan
Breaching ¥109 on September 18th of 2014, the U.S Dollar continued to hit a fresh six-year high against the Japanese Yen. As per the experts of the Federal Reserve, the interest rates are expected to rise as the global economy stabilizes. With the Bank of Japan’s massive quantitative easing program which was initiated after Prime Minister Shinzo Abe took power in 2012, many economists expected the fall of the yen. The yen has plummeted by over 6% – an amount much out of line when compared with that of other regional currencies, between July and September.
Indonesia
As per the industry experts, Indonesia will be able to overcome the major economic challenges over the next decade. According to the World Bank report, Indonesia’s 2015 growth forecast has been cut down from 5.2% to 5.1% which is the lowest in the five years. However, with the GDP growth slowing at the same time with the widening of the current account deficit, it has become a cause for major concern. The ASEAN Economic Community (AEC 2015) aims to transform Southeast Asia into a single economic union for trade, labor, and investment. However, compared to Malaysia and Singapore, Indonesia is lagging far behind and needs to develop its economic infrastructure.
Malaysia
It has been able to keep up with optimistic economic trends in 2015 as per the experts. Malaysia’s GDP is expected to rise by 5.8% in 2015. As investors and consumers prepare for implementing the GST, Malaysia’s domestic economy is expected to accelerate in the 1Q15. The Malaysian Ringgit is expected to trade between 3.35-3.40 to the dollar from the present rate of 3.50.
China
With the up-gradation of the China-ASEAN cooperation as promised in the Greater Mekong Sub-Region (GMS) Summit held in Bangkok on December 19th and 20th, China has promised billions of dollars to help develop the infrastructure and expansion of trade in Southeast Asia. US$10.6 billion investment to build the southwestern railway through the Chinese city of Kunming connecting Laos will be a reinforcing step in 2015.
The emerging economies today offer a great and new way to look into the world. How do you evaluate the market trends today? Have a look at the emerging economies and understand the countries that you can invest in. Whether it is knowing what is the return that you can expect or raking in more profit when the time is right, investment decisions need to be taken wisely, something that you need to take help in. Asian countries today can offer some of the best investment opportunities out there – just lookout for what’s right for you.
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