As per the IMF working paper – ‘Asian Equity Markets: Growth, Opportunities, and Challenges’ (December 1, 2006) “Over the past five years, Asian emerging markets have outperformed mature markets but lagged other emerging markets. Overall, stock prices generally remain well below pre-Asia-crisis peaks, whereas equity indices in Latin America exceed their 1990s highs.” Other than the quantum of returns of Asian markets, their volatility is still higher than the 1990s level while in the case of Latin markets, it’s the opposite. Furthermore, the rising foreign institutional investments in Asia is even fuelling doubts about Asian stock markets getting overheated? Well, while the Lat’ bulls are having a ball; the Asian markets must ensure a performance that relies less on foreign funds and more on domestic participation.
According to IMF market volatility which currently is at 30%, 29.6% and 25.6% in countries like Indonesia, Korea and Thailand is much higher as compared to the Latin average of 20.2%, which needs to be controlled tactfully. Otherwise, the fear of overheated market conditions may soon drive the money out from Asian markets to the Latin American markets.
For complete IIPM article click here
Source:- IIPM Editorial
An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative
According to IMF market volatility which currently is at 30%, 29.6% and 25.6% in countries like Indonesia, Korea and Thailand is much higher as compared to the Latin average of 20.2%, which needs to be controlled tactfully. Otherwise, the fear of overheated market conditions may soon drive the money out from Asian markets to the Latin American markets.
For complete IIPM article click here
Source:- IIPM Editorial
An IIPM And Management Guru Prof. Arindam Chaudhuri’s Initiative
