<<<<<, I choose Hong Kong instead of Korea
.....to me it seems that hong kong has been hit, but china has not. i would wait to buy hong kong until china gets hit. by the way, i think that we will get hit in the next 6 months as will europe. i think that i am going to start buying a little sony and honda on weakness
......from the street.com
Which takes us right back out to Asia. As I've said, I've been there before. Seen the hyperactive growth of Beijing, the teeming motorcycles of Saigon and the incredibly orderly life of Japan. And despite the feeling on Friday that all is well in Asia, it's clear that this region still has much to weather. Even in Indonesia, where the country has knuckled under to IMF pressure, the potential for political unrest will continue to simmer beneath the surface.
The key to the region remains Japan. China has stepped up its own efforts to appease the great powers by declaring its powerful affinity for a stable yuan, and by extension a stable Hong Kong dollar. It's thought that China is hoping its stalwart efforts throughout the Asian economic crisis will win the nation quicker entry into the World Trade Organization. With China firmly backing its currency, all eyes are on Japan. And right now Japan looks pretty good.
The stock market is reviving with a move Friday to just above 16,000 for the Nikkei. That has Tokyo traders brimming with confidence. But before we dance all the way to Dow 10,000, let us recall that Hashimoto has frustrated the bulls on more than one occasion.
Amid the swift return to optimism -- and much of Wall Street is very eager to be optimistic -- many troubling elements continue to float in the water. For one, Asian problems won't show up until the first-quarter earnings reports due out in April. And despite the optimism about that region, damage will be deep and profits will suffer. That is not good news for technology or growth stocks, yet denial remains deep.
Indeed, even as many pundits argue that earnings will be fine, one of the core stocks in their argument, Intel, is starting to slide. Few are paying much attention to it, but after the excitement surrounding its earnings on Tuesday the stock has edged lower. Even in Friday's up market, Intel was drifting lower. That is not a good indication for those believing in a technology-led return to the bull market heyday. Moreover, those Asian problems continue to trouble the other big leadership group, the banks.
All told, the market has many hurdles ahead of it. Rather than get giddy, have a peek at the Hong Kong stock market. On any given day this past week, the Hang Seng has moved -- up or down -- 6% to 7%. That would be like moving up and down 400 or 500 points a day in New York. We won't get that kind of volatility, but it's going to be up-and-down for some time to come. |
