New traders may find it exotic to play in the Asian Stock Market but even seasoned investors need to learn the fundamentals. Actually, Asian markets can offer good opportunities than the domestic market because of MNCs [multinational corporations] involved.
Asian Stock Market – Overview
Asia’s securities market is more than 150 years old, so their stock exchange is nearly as long. After the World War II, global trade, industrial expansion, and population explosion contributed to a flow in the Asian market. Recently, boom in tech has enabled Asian economies to grow rapidly.
In Asia there are 49 nations, so you can say that Asian Stock Market includes multiple markets. Thus, investing in Asian Stock Markets
offers many trading opportunities. The 3 largest Asian exchanges are –
- Hong Kong stock exchange
- Shanghai stock exchange
- Tokyo stock exchange
Combined trading value of all three was nearly $8 trillion in 2015, when compared to NYSE trading volume at $20.61 trillion in 2011. As an investor, it indicates that there are massive breaks in this massive Asian market.
Asian economies are prospering
Even though at times you may see some flops in key Asian stock markets there is still a good boom in Asian economies. According to history, Asia holds a robust record for extended economic booms. As a group, Asia enjoys fast paced, steady growth for many years. GDP growth in seven Asian countries has been over 3.5% annually for last five decades and 11 other Asian countries are enjoying GDP boom more than 5% for last two decades.
Asian markets offer options in bearish environment
If the Hong Kong or Shanghai stock market is in full bearish position then an investor can view it in two ways.
- Make revenue trading penny stocks without any worries about the overall market’s performance.
- When economy grows buts stock market drops then look for undervalued stocks. Apply the buy-low and sell-high technique to earn significantly.
Multiple penny stock options
Penny stocks are available in India, Japan, China, Philippines and in places having stock market. Knowledge is needed to find proper penny stocks. Educate to overcome hindrance prior trading.
A chance to diversify
Asian Market investment allows investor to diversify their portfolio. Make sure to research and understand before leaping. In case of doubt, the best solution is to stay away.
Different time zone
You get a chance to trade at unusual hours. Stock market opening differs everywhere, so you get to trade comfortably after daily work hours.
Set trade time
It is a great idea to trade different markets at distinct hours but can make you addicted, so set hours to trade. It does not matter, if you win or lose. Just walk away from your computer and enjoy eating and exercising.
How to invest in Asian Stock Market?
- Fundamental analysis will help to determine long term value of specific stocks.
- Follow news catalyst that is drivers of significant market volatility.
- Be wary about stock promoters.
- Create Asian stock watch-list.
- Monitor Asian stock patterns.
The risks of investing in Asian Stock market is similar to those you come across in your own domestic markets. You are familiar about domestic news, so know the ropes. If you trade in Asian Market monitor that particular market news.