Asian Markets Chase U.S. Rally
In currency trading, the dollar was buying 111.48 yen vs. 110.90 yesterday, according to Bloomberg.
In Korea, the Kospi finished up 40 points, or 2%, at 1972.
Beijing announced that retail sales in October rose 18.1% on the year. That's a record growth rate for retail sales, prompted in part by investors' stock market gains this year, said the announcement.With recent falls in the major indices, strategists in Asia have been speculating when Hong Kong hedge funds would resume the practice of borrowing in Tokyo at 0.5% interest rates, and investing on the island, known as the yen carry trade. Now, some say this may resume, and most agree with a bullish, if volatile, end to the year for Chinese equities, especially if the Federal Reserve cuts rates one more time in December. "There's room for a U.S. interest rate cut -- that would spill down and create liquidity in Hong Kong and China markets. Secondly, we expect strong earnings at the end of 2007 and probably in 2008, too," says Peter So, head of Hong Kong and China strategy for DBS Vickers in Hong Kong. "That's a good reason for investors to allocate more funds to assets in Hong Kong and China." So also expects Beijing to begin allowing more Chinese institutions to buy Hong Kong side shares, which would be a plus for most U.S. ADRs. He adds that most of the buying action will be seen in properties, financials and consumer stocks. "Consumer stocks will benefit from high consumption in China and at the end of the year, when many workers get their bonus payments," says So. "I'm still working on [a target] but in 2008 the Hang Seng index will reach around 37,000 points. I think this is achievable."
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV