ASEAN KEY DESTINATIONS
Can ASEAN Lead the World Markets Higher Shayne Heffernan
Can ASEAN Lead the World Markets Higher
As we suggested yesterday major ASEAN markets fell on Thursday as worries over euro zone debt crisis further soured appetite for risk. Over night the Wall St market fell hard, at one point the Dow was down over 300pts.
With world markets heading lower now there is the possibility that a new trend may emerge today, it is actually possible that the ASEAN markets can lead the world markets higher today.
Lets look at some numbers, the China-AFTA covers a population of 1.9 billion and accounts for about 4.5 trillion U.S. dollars in trade volume. then there is the AFTA-India adds 1.1 billion people.
That is 3 billion people, in fact it is almost half of the total world popularion, in growing economies and represents a huge market for many of the USA listed companies.
Although foreign investors have reduced holding across Asia in the last few weeks, that money may find its way back into the regional economies of ASEAN very fast, the reality is where else can it go?
ASEAN contains some of the best economies in the world now, it is the safest place to be invested provided you are picking good quality investments.
So while the world situation points to a disaster on ASEAN markets today I am inclined to think that we will see a flat to up day.
Singapore fell for a third session to hit its lowest since March 1, despite data showing the economy grew more than expected in the first quarter helped by a recovery inmanufacturing.
Jakarta market opened positive on the appointment of career banker Agus Martowardojo as the country’s new finance minister and economist Anny Ratnawati as his deputy. However, the market reversed course to end at its lowest since March 17, led by mining shares with 2.2 percent fall in top miner Bumi Resources.
Malaysia fell for a fifth straight session led by 1.8 percent fall in Genting (GENT) and 3 percent slip in Telecom Malaysia.
The Philippines .PSI fell for a fourth straight session with a 0.3 percent slip, led by 1.8 percent fall in property firm Ayala Land (ALI) and 2.3 percent slip in Bank of Philippines Issland (BPI).
Vietnam, which was down for three straight sessions, closed 1.7 percent firmer after touching its lowest since February 1 during the trade on late bargain hunting.
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