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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Michael Sphar who wrote (3954)	5/28/1998 1:04:00 PM
From: MikeM54321	Read Replies (1) \| Respond to of 9980

Michael, I think that Japan's exports to other Asian Tigers is small compared to the US market. I don't think Japan worries to much about exporting to other Tigers. I think Japan's big concerns are their loans to the Tigers. And yes, I believe with the devaluation of the yen, they hope other countries will pick up export slack, and then some. I don't know the figures concerning Europe and Latin America, but that would be interesting to know. I don't believe Japan has a large manufacturing presence, if any, in China. Japan missed their chance to invest in manufacturing in China. So when China decided to get into manufacturing for export, and devalued their currency 33%, it started the current Asian crisis. The Tigers had trouble competing with "the mother of all sweatshops," China. Hence they couldn't make their loan payments (Sorry if I'm repeating myself. I post here and on HONG KONG). Most feel if China devalues again, it's bad news for all Tigers, because they will be forced to devalue also. In a convulted way, the statement about China devaluing being "good," meant(IMHO) that it would cause another round of devaluations around the entire Asian region. Then Japan gets even cheaper goods, then Japan can continuing selling to the US. Again, it's only my guess as to what he meant. I doubt it had anything to do with friction between the two countries. MikeM(From Florida)