What’s in store for Asian stock markets?
In 2018, the market is set to rebound, and the Asia-Pacific economy is expected to grow at its fastest pace in more than two decades.
But for some investors, the outlook for Asia’s stock market is still bleak.
In the past, the region has seen strong growth and even sustained growth, but the region’s stock markets have been hit hard by the fallout from the global financial crisis.
“It’s a big mess, and we’re going to see a lot more of it,” Mr Lee said.
The Chinese government has promised to boost growth in the region by 30 per cent over the next five years, but analysts are sceptical.
While China’s economy is growing strongly, the world’s third-largest economy still faces a serious fiscal deficit.
Mr Lee is not optimistic that China will make significant progress in improving its finances in the next two years.
“[We] don’t know how fast they will get back to their growth rate, how much they will need to borrow, and how much it will cost to do that,” he said.
“And it’s not a lot.”
The impact of the crisis has also hit Asian investors’ returns.
Analysts expect Asia’s economy will grow at a much slower rate than it did during the financial crisis, and many are forecasting lower growth rates for the next several years.
While the Asian market will be recovering in the near term, many Asian investors are now concerned about the health of the stock market in general.
They worry that the crisis will force investors to take a bigger risk, and that the global economy will continue to take hits.
If you are worried about the stock markets in Asia, you might want to take your chances overseas.
Topics:business-economics-and-finance,business-news,asia,market-and_utilities,investor-relations,stocks,financial-markets,asia,united-statesFirst posted September 01, 2019 19:58:25More stories from New South Wales