Just under 60 years ago, North and South Korea weren’t all that different. Fast track to today. While North Korea continues to wallow in the mud, South Korea has quickly become one of the most productive societies in the world. They’re the fourth largest economy in Asia. Living standards are almost the same as that of the average Aussie. What took us hundreds of years, South Korea did in 60.
You’ve probably read all about Chinese tourists fuelling Australia’s tourism boom. But did you know, as more come to enjoy their Aussie holiday, Chinese tourists will change the way you buy everything? While we in the West love our credit cards, Chinese seems to have skipped them altogether.
Asia is the largest region on the planet in terms of size and population, so what happens in Asia matters to our market here in Australia. And Asia is booming — the charts clearly show it. A strong Asia should keep the ASX bubbling throughout 2018, providing plenty of trading opportunities.
There’s no question that spotting growth in emerging countries — economies in need of our resources — at the right time is a huge opportunity for Australian investors. And luckily, I think there’s an equally compelling story right now that could have similar benefits for brave investors. It’s not in China though…
China's President has called it ‘the project of the century.’ The initiative is motivated by a desire to boost economic growth in both China and nearby countries. This will provide a growing market for trade. It’s the largest overseas investment plan ever launched by a single country.
Earlier this week, Japanese stock market index Nikkei 225 saw their stocks decrease by 0.15%. What caused the drop?
According to Bloomberg, ‘Mom-and-pop investors haven’t been this crazy for Hong Kong initial public offerings since 2009.’
After going sideways for five months, the Aussie market has been on a tear lately. At the same time, our largest trading partner, China, has been in the news — and not all of it is for positive reasons.
While all the focus is on western economies which have been plodding along, I’m expecting Asian markets to be really strong in the coming year. A strong Asia will present opportunities on the ASX and keep our market bubbling.
What has happened…while other indices like the S&P 500 have enjoyed double digit gains, our own market has gone nowhere. At the start of the year, the ASX 200 was trading at 5,700 points. It now trades around 5,655 points.