Asian Nations Try Not To Get Scorched By 'Hot Money'
Tue, 03/08/2011 - 01:01 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
SINGAPORE: With volatility rocking markets in China and Japan this year, equity investors are finding refuge in Asia's brightest spots: Indonesia and Thailand. Southeast Asia is providing a haven as the region's economies accelerate. Indonesia and Thailand are the biggest gainers this year among Asian equities, a turnaround from 2015 when the two benchmark indexes tumbled more than 12% amid a plunging baht and rupiah. The region and its currencies have been calmer amid expectations the Federal Reserve will delay further interest rate hikes, says Alan Richardson at Samsung Asset Management.
Asia is the largest and fastest growing continent in the world, and the region’s business environment is set to will change immensely over the next decade – however, some nations will see more foreign investment than others.
A survey by The Economist found that by 2020, businesses in Asia will be focusing their expansion efforts on Malaysia, China, and India. However, many more plan to open new factories and offices in Thailand, Myanmar and Vietnam by 2050.
KUALA LUMPUR — Sun Life Financial, Canada’s third biggest insurer, is boosting investment in Indonesia and Malaysia at a time when growth in earnings from some core Asian markets has slowed.
“This is not the time to slow down in Indonesia – companies that don’t make the investment are going to find themselves quite far behind,” Kevin Strain, president of Sun Life Financial Asia, told Reuters.
Sun Life manages assets of $590 billion globally and aims for its income contribution from Asia to reach 12% by 2015 against 10% now.
Buddhika Weerasinghe/Getty ImagesContinuing on a now well-worn path of groups downgrading economic growth forecasts, the Asian Development Bank (ADB) today lowered its GDP forecast for developing Asian nations in 2016 citing a weak recovery in major industrial economies and softer growth prospects for China.
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.
An Apple Inc. executive whose responsibilities include iPhone hardware is leaving the company in the wake of antenna problems with the newest version of the smart phone. And After prodding from the Japanese government, Apple will post prominent notices on its website warning that some older iPod Nano music players may overheat.
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.