You can invest in Asia in various ways, by opening an investor account there or by making use of the international brokers that give you access to the stock exchanges in Asia. When investing in Asia, you benefit from high economic growth, but make sure you also take into account the problems in Asia and the risk of investing in Asian equities.
About investing in Asian stocks
- Asia is known for its high economic growth. Countries such as China and India have been showing excellent figures for several years, although growth seems to have slowed down somewhat lately. Nevertheless, the economies have performed much better in recent years than in many European countries, which has led, among other things, to the middle class in China and India improving significantly. As a result, companies in these countries have been able to increase their turnover and European companies are also gaining a foothold there.
- On the other hand, both China and India seem to be facing a growth ceiling, as food prices are rising and, especially in India, the Central Bank is paying close attention to avoid real difficulties. Inflation is still well under control at the moment, but there seems to be an area of tension. The question is whether the Asian countries can continue to develop in a strongly positive way in the coming years.
- Recently, the Chinese stock market has been under considerable pressure. The Chinese stock market has already fallen sharply and the question is how this will develop in the future, other emerging markets like Brazil and Argentina are also doing pretty well, especially the Forex trading mercado en Argentina has grown enormously.
Risk of investing on the stock exchange in Asia
Investing in equities in Asia involves more risk than investing in the Netherlands or America, for example. The volatility of Asian equities is generally somewhat higher than in the Western world. This is partly due to the relatively young age of the various stock exchanges, but mainly due to the way in which companies are currently focusing on the middle class. New companies quickly grow into major players, but on the other hand are easily overtaken by new developments in the market. In this way, investing in Asia can provide a decent return, but also brings more risk.
Asian assets are on the rise in emerging markets
Of all asset classes, emerging market equities in Asia will perform best over the coming year, institutional investors expect. This is the conclusion of a survey by Citigroup. The turn of the year is in sight, so that means that many banks are looking ahead to the year ahead. Citigroup asked 60 investment professionals from pension funds, investment funds and hedge funds which asset class they believe has the best cards for the new year.Emerging markets from Asia come out as favorites, according to Bloomberg. More than 25% of institutional investors surveyed expect these shares to outperform the market in 2020. U.S. equities take second place. The fact that they do not reach the top position is not surprising, according to Citigroup, as many investors expect the dollar to weaken. Also the rise of German stocks was kind of unexpected this year, but it’s been a relatively good year for a lot of online brokers at Germany according to Commoditytradealert.DE
