Investors regularly enjoy a good dose of information about the best places to invest and/or do business in Asia. However, the recent activity implemented by the Chinese government resulted in the supposedly safe investment havens in the continent in danger of being on their way to oblivion. The focus of probably all investors and entrepreneurs in the world is China’s economic activity. Depending on their strategy, it could give one great gains or great losses!
The third week of August onwards marked yet again another disappointing record in the financial world’s history. Major markets throughout the globe are shaving record-low points which when converted to monetary metrics would amount to hundreds of billions of dollars wiped off clean! A lot of investors are probably thinking right now that this may perhaps be a new dark chapter in history after the big financial crisis in 2008-09. You can read detailed opinions and advices via the Day Trading Academy investing blog regarding this matter.
The following were ranked the best places to invest in Asia early this year but are now facing back-to-back economic problems: Japan, Malaysia, South Korea, Thailand, Philippines and Indonesia. The aforementioned Asian countries are currently having headaches particularly in addressing the sudden plunge in their respective currencies’ values.
According to Jeffrey Hagenmeier of the Day Trading Academy, “The currencies of Indonesia and Malaysia .are already at 17 year lows in valuation. Indonesia has seen its currency drop some 60% and Malaysia 33% in the last four years alone.” The two SEA nations experienced a bitter devaluation of 8.4% and 9.8% respectively. Japan and South Korea meanwhile might also observe further devaluation of their currencies. The same holds true to Thailand (6.4% currency plunge) and the Philippines (2.2% drop).
To make things worse, the effect resulted from the drop in value of China’s Yuan isn’t confined in Asia alone. Plenty of countries in Africa, Europe, North America and Latin America weren’t exempt from the effects too. Economists say devaluation is permissible so long as it’s unintentional. However, China is doing the opposite in order to manipulate trades to its advantage.
If you’re looking for places to invest or do business in Asia; this time is not the most opportune one. Not unless there is going to be a miraculous turnaround.