After a few troublesome weeks, things are looking positive for the Asian stock markets once again. Mainly Japanese stocks saw a nice increase on Monday morning, amid the weakening yen. At the same time, new economic data keeps investors happy, for the time being. But that doesn’t mean that Asian stock markets are out of the woods yet.
It appears that investors are moving money back to Asian markets after months of capital outflows and plummeting stocks. That is not entirely surprising, as new Japanese economic data shows a positive outlook for the remainder of the year. Then again, depending on how the Yen value evolves in the coming weeks, a reverse trend is not out of the question either.
Both the Nikkei and Hang Seng Index showed healthy growth on Monday morning, although the gains were all well below the 1% mark. This increase is partially fueled by the US governmental election outcome, as many investors were concerned over a Trump win. But for now, it seems that the markets are somewhat stabilizing again, even though this may be only a reprieve.
Another positive trend for Japan is how the economic projections were far off, but in a positive manner. With a 2.2% quarterly economic growth, the result beat the expectations by quite a margin, which spells a positive future for the country. Despite this growth, however, exports declined by 10.3%, compared to the same period in 2015.
While this news is a positive boon for Japan’s economy, there are still a lot of other concerns that will need to be addressed sooner or later. Asia is an enormous continent, and several economies are struggling with their fiat value right now. China weakened the yuan once again, marking the 12th consecutive decline against the US Dollar.
As the PBOC continues to weaken the Yuan, Hong Kong stock markets are feeling the brunt of the outcome. Even though the fundamental trends are all in the green, the weakening currency remains a head scratcher. Then again, a weakening yuan makes local goods more attractive to foreign buyers.
With Black Friday on the horizon, it is expected that electronics manufacturers will see a significant export uptake. As consumers around the world shop for the best deals, most of the products purchased are related to electronics in some capacity. Some electronics manufacturers in Japan already see an increase on the stock market, with others expected to follow.
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