Asia's Fall a Distant Memory

 

Asia's asset managers and analysts are abandoning previously gloomy outlooks as springtime is producing an unexpected blossoming of regional equity prices.

After Monday's gains, Japan's Nikkei has jumped nearly 2% so far in April while Hong Kong's Hang Seng has risen 4.8% and is now less than 1% away from its all-time high of 20,950, set on Jan. 24. China's Shanghai Composite Index has been the biggest gainer of all, surging 13% so far this month, and is now up 31.5% from its low on Feb. 27, when the market plummeted 9% in a day. On Monday, the Shanghai Composite Index closed up 2.2% at an all-time high of 3,596.44.

"We're still in a zone of loose monetary policy, so equity markets will remain reasonably buoyant" for the time being, says Sean Darby, head of Asia strategy for Nomura Bank in Hong Kong.

Since February, no amount of negative news has been able to hold back Asia's markets, including fears of further interest rate hikes in Japan and recent hikes in China. For example, China's domestic markets surged again Monday even as the People's Bank of China's 50 basis-point hike in reserve requirements took effect. The reserve requirement ratio is the level of funds the bank is required to hold against interest liabilities, and a hike in the ratio is generally seen as a negative factor for markets.

TheStreet Premium Services    For Personal Service: 877-471-2967

Jim Cramer
Jim Cramer's Action Alerts PLUS:
Trade right alongside a Wall Street pro — enjoy access to his Charitable Trust portfolio and be sent trade alerts BEFORE he makes a move. Learn More
New: ETF Profits
ETF Profits:
Get money-making ideas from the hottest investment vehicle on the planet. Our experts show you how to play various ETF sectors to help pump-up your portfolio. Learn More
OptionsProfits
OptionsProfits:
Get 50+ trade ideas a week from the industry's top options experts. Plus — exclusive commentary on market trends and essential trading tools. Learn More
Doug Kass
Real Money:
Our team of professional Wall Street Pros — including Jim Cramer, Doug Kass, and Nicholas Vardy — delivers intelligent analysis, timely trade ideas, and colorful commentary. Learn More
Stocks Under $10
Stocks Under $10:
Break into the market with small- and mid-cap stocks... all $10 or less! David Peltier tells you exactly which low-priced stocks he's buying and selling. Learn More
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
blog comments powered by Disqus
Dow Jones S&P 500 NASDAQ 10-Year Note
12,759.53 1,337.45 2,898.07 19.86
Oil *
117.16
DOWN
130.93
DOWN
14.50
DOWN
29.16
DOWN
0.61
10 Yr
1.99%
SPDR Gold
166.72
-1.02%
-1.07%
-1.00%
-2.98%
Data delayed 20 minutes

Top Stories and Tools

Brokerage Partners

After the Bell

Before the Bell

Booyah! Newsletter

ETF Daily

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

We respect your privacy.
Podcasts

Connect with TheStreet