Oasis Investments Limited: Asian Markets Soar As They Enter 2013

Asian markets have seen significant gains since the beginning of 2013, with dozens of investment companies and financial firms jumping on the bandwagon to benefit from the region’s recovering economies.

This Friday’s reports revealed that Japan’s Nikkei Stock Average rose 2.9%, while Hong Kong’s Hang Seng Index increased 1.1%. The Shanghai Composite grew as well.

According to the Nikkei business daily, the central bank plans to add around $110 billion to its asset-purchasing program. Reportedly, this will be the first time that the Bank of Japan eases in two consecutive meetings in nearly a decade.

Meanwhile, Taro Aso, the Japanese Minister of Finance, has stated that the Bank of Japan and the government have not yet reached a set inflation target. Analysts believe the bank will be willing to set a 2% inflation goal, instead of the current 1% target.

Still, the region’s broader market has maintained its former levels despite recent developments. According to Andrew Sullivan, a market commentator based in Hong Kong, this is “partly due to the fact that a lot of retail money is tied up in IPOs, and institutional money is focusing on Japan as the yen weakens.”

About Alison Meadows

Alison Meadows has a PHD in Economic Trends in Modern Times and is a known writer who focuses on hedge fund investments. Meadows, her husband, and three kids live in Boston, where she grew up and attended college. Contact Alison at alison[at]businessdistrict.com