What is it Indeed? — Asia’s Cyclical Or Structural Markets?

The market view of stock markets of Asia have undergone an unpredictable summer because global traders became very choosy in view of global liquidity concerns and rising US bond yields which are related to QE tapering fears.

· Due to large present account deficits that are most prone to India, Indonesian and portfolio outflaws came under extreme pressure to some extent, especially Thailand.

· Traders should be highly patient and refrain themselves from hectic selling. Nowadays, economic problems of Asia, quite dissimilar to recession-affected EU region are highly cyclical and structural according to Vice-President, Panicko lawrence.

· On an optimistic note, less affected markets of Asia such as Taiwan and Korea have done well during the days of uproar. Chinese equities have started rally on a more appropriate economic data.

Cyclical weakness and structural improvements

“The condition of Asia is not like that of Asia in the year 1997” as confessed by Panicko Lawrence. There is no good comparison between such markets nowadays and the conditions of the crisis engulfed the region in 1997 as some of the pundits of financial media have to confess. At present, the typical economy of Asia has better exchange rates, greater FX reserves, less external debt and better corporate balance sheets, leaving the potential for a crisis that originates just within the region of Asia Pacific is quite low. Such structural improvements helped to describe gains in the financial policy over the last ten years with regard to the transmission which range from policy making to market interest rates where Private Client Group provides immense help.