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

To: Logos who wrote (4575)	6/16/1998 1:06:00 AM
From: Logos	Respond to of 9980

RE: Asia Up? OK, I think I know what happened. The Yen bounced up on a wave of buying after dropping to some technical points that chartists with deep pockets used as buy points. It jumped to 142 per $ before dropping a bit to 143.9. This, however, was enough to give investors some confidence in Asian stocks and buyers came back in. As futures traders for the S&P and NASD saw this, they also took heart. So maybe Tuesday will see some rallies. Personally, I think these are all sucker rallies, since nothing has really been solved. Japan's economy is still in the doldrums and if the Yen starts moving down again, eventually it could cause a new round of devaluations and we would see a new downward spiral. One bright spot, though: As long as things don't get worse, they get better. What I mean is that Asian companies, if they can stay in business, are now really competitive because of their weak currencies. Asian countries, even Japan, may be able to export their way out of recession, assuming the banking system is stabilized a bit. Western investors, seeing some stability, may even decide the worst is over and begin bargain hunting, providing much-needed cash. That's the hope, anyway. Logos