The economies of Japan and China have endured some rough times over the last part of 2015 and all of 2016 so far, but the Asian/Pacific region as a whole is currently breaking through with one-year highs within the stock markets here. The MSCI Asia Pacific Index hit 138.22 at the close of Hong Kong trading hours on Tuesday, August 9th. It’s the highest point that it has closed at since August 17th, 2015.
China is still an exception to this trend. It is mainly the emerging markets that are outperforming right now. This includes countries like Malaysia, Vietnam, South Korea, and the Philippines. These are not major countries when it comes to investments, and almost no binary options brokers carry individual companies, or even indices, from these nations. However, thanks to the fact that so many investors are disappointed with the rate of growth within the United States and refocused dollars that were diverted after the surprise Brexit vote, many of the wealthier individuals and funds are focusing their attention on developing markets. The winner is the countries that are seeing this new influx of international cash. It has boosted markets to new highs, creating more opportunities both for the people living there, and your portfolio.
And even though China is still struggling, there are signs of improvement that are beginning to develop here. The Shanghai Composite Index is nearing two week high points, deflation has been slowing down steadily within China, and the economic outlook for manufacturing within the Asian giant is beginning to improve in a tangible manner.
Problems are still apparent in both China and Japan, though. A stronger than normal Japanese yen has hurt Japanese business considerably. Japan’s Topix index has fallen by about 15 percent so far this year thanks to the strong yen, and many of the Chinese indices have suffered by about the same amount. It’s tough to know precisely when this will turn around, and for short term traders, looking at these from a long point of view is still a fairly dangerous move. While it’s pretty certain that both economies will improve, there’s no definite timetable yet established for when this will occur, and attempting to predict big gains through your short term trades is extremely risky. There are plenty of great opportunities out there for binary options and Forex traders, but as of now, speculating on the Chinese and Japanese stock markets isn’t one of them.
If you are interested in short term trading within these markets, the Forex and binary options angles are the most cost effective routes to take. However, as we discussed above, right now, the major assets are extremely difficult to predict. There are a number of ways to avoid this issue, though. One easy method of improving your ability to profit off of data coming out of the Asia/Pacific region is to shift your focus away from currencies and indices, and focus on commodities instead. For example, we know that China is one of the biggest importers of steel in the world, and as their businesses have suffered, so has the price of steel. Add to this the fact that the U.S. has raised tariffs on Chinese cold rolled steel by over 500 percent, and you can see that the price of steel has suffered as a result. Binary options allow you to easily make money off of fluctuating commodity prices, even if you are only willing to risk small amounts. The futures market is often extremely expensive because of the cost of initiating contracts, but the binary market has none of these extra costs associated with it. This is just one example of how larger economies impact commodity prices.