Asian Nations Try Not To Get Scorched By 'Hot Money'
Tue, 03/08/2011 - 00:01 EDT - NPR - National Public Radio (Business News)
Investors have been pouring money into emerging markets in Southeast Asia. A similar flood of cash in the 1990s caused economies to overheat and governments to crumble. This time around, the countries may have learned lessons to prevent a meltdown.» E-Mail This» Add to Del.icio.us
The ETF Professor
It is no secret that scores of emerging markets ETFs, diversified and single-country funds, have been residing in the proverbial tank over the past several months.Emerging Asia, a region viewed by many analysts and economists as more attractive and stronger than Latin America, has not been immune to the sell-off.
Japan Hardware Sony’s (SNE) PlayStation Portable and PlayStation 3 outsold Nintendo’s (NTDOY.PK) DS and Wii machines in Japan in November, helped by releases of exclusive game titles. The PlayStation Portable sold 236,775 units, compared with 147,016 for Nintendo’s handheld DS, Enterbrain. The release of Capcom’s “Monster Hunter Portable 3rd” title for the PSP on Dec.
Asian markets ended sharply lower Friday, and European markets were also down. Asian investors turned cautious after Thursday's fall in U.S. stock prices. And Europeans are worried about a looming financial crisis in some E.U. nations, including Greece. Global markets are also awaiting news Friday from the U.S., including the monthly jobs report.
Michael Johnston submits:Global X rolled out the latest addition to its rapidly-expanding ETF lineup on Thursday, launching the FTSE ASEAN 40 ETF (ASEA). The new fund seeks to replicate the FTSE/ASEAN 40 Index, a benchmark that is made up of the largest companies in the original five ASEAN countries: Indonesia, Philippines, Singapore, Malaysia and Thailand.
China on Friday led an Asian backlash against measures by the United States to kickstart economy recovery, which have stoked concerns that a flood of loose money could destabilise regional economies.The Federal Reserve said Wednesday it would pump 600 billion dollars into the economy through debt purchases -- effectively printing money -- to boost employment and growth.But Asian nations fear the effects of extra cash pumping through the financial system -- as traders seek a better return on their dollar than they would get in the West.
The G-20 Summit in Pittsburgh is part of continuing global efforts to coordinate economic policy to recover from the worldwide financial crisis. The big issue on the table is what steps to take to avoid another global meltdown. David Wessel of The Wall Street Journal tells Linda Wertheimer that with the financial emergency over, it may be harder for summit attendees to agree on anything.