Asian economies, including China, Japan, Australia and many southeast Asian nations, have signed the Regional Comprehensive Economic Partnership (RCEP). Asian economies are already in good spirits, says Laura He on CNN. The region has largely dodged the worst of the pandemic. The RCEP deal will only reinforce the eastward drift of the global economy’s centre of gravity.
Not everywhere in Asia is so fortunate. India’s economy has been hit hard by Covid-19, but its BSE Sensex index hit a new record high this week on positive vaccine trial news. The index has gained 69% since the mid-March low. Indian equities have also been boosted by the unwinding of US election risks, says Buttonwood in The Economist. With less to worry about at home, American money managers are ready to go shopping abroad.
Emerging markets certainly have some catching up to do: the MSCI Emerging Markets Index has gained just 3% over the past ten years and remains short of its 2007 all-time high. While some east Asian emerging markets have soared of late, Brazil and South Africa have lagged. The case for emerging markets has long rested on powerful demographic trends, say Tony Roth and Meghan Shue on CNBC.com. But today the central role of Asian economies in the “digital revolution” is just as important.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
As well as manufacturing most of the world’s gadgets, Asian consumers are also the most enthusiastic digital adopters. The region’s economies are “years ahead” of America’s when it comes to “contactless payments” and “facial recognition software”. Post-pandemic, the likes of Vietnam, Indonesia and India are likely to get a boost as multinational companies re-think their supply chains. “The smart money” is betting on emerging markets.
-
‘My estate faces a £214,000 tax bill unless I get married’ - the perils of the inheritance tax pension reformsThe chancellor's plans to charge inheritance tax on unused pension wealth could be bad news for cohabiting couples
-
Investec enters cash ISA market with top rate for saversThe bank and wealth management group's new fixed-rate deal is one of the best on the market.
-
Albert Einstein's first violin sells for £860,000 at auctionAlbert Einstein left his first violin behind as he escaped Nazi Germany. Last week, it became the most expensive instrument not owned by a concert violinist
-
Who is Rob Granieri, the mysterious billionaire leader of Jane Street?Profits at Jane Street have exploded, throwing billionaire Rob Granieri into the limelight. But it’s not just the firm’s success that is prompting scrutiny
-
Emerging markets boast top-quality growth stocks at bargain pricesOpinion Lim Wen Loong, investment director at Ashoka WhiteOak Capital, selects three growth stocks where he’d put his money
-
Beware the bubble in bitcoin treasury companiesBitcoin treasury companies are no longer coining it. Short this one, says Matthew Partridge
-
Klarna leads a financial revolution – should investors buy?Klarna has ambitions to rewire the global payments system and has huge growth potential
-
New faces don’t solve old problems – why strategy also matters when it comes to investment trustsOpinion Changing managers often fails to boost a trust’s performance, says Max King
-
How to profit from silver’s record riseSilver often lets investors down, but there may now be room for further gains, says Dominic Frisby
-
Are venture-capital trusts worth investing in?Venture-capital trusts are a tax-efficient way to invest in early-stage companies. But are they worth the risk?
