The web economy blog

The equilibrium of worldwide economic strength is gradually moving from West to East, with China, the world’s most populous nation, and with India leading Asian economic growth in the past decade.

Asia – Unable to dodge the economy crisis

In the past few years, money has poured into emerging markets accompanied by discussions of decoupling. That’s the idea that emerging markets, particularly in Asia, can shake off weak growth in America and Europe. But the emerging markets haven’t stayed with that game plan. In the latest global deceleration, even though emerging economies have sustained a faster growth than their developed counterparts, their stock markets have fallen back.

The last recession showed that developing-world stock can’t decouple and neither can economies, says stated a noted economist. In a downward spiral, emerging markets are susceptible to capital leaving the economy as risk aversion rises and financiers withdraw cash. The current Western slowdown, which could well build up into another recession, is disturbing emerging markets through exports.

With this week’s gain, the MSCI Asia Pacific Index is now in the upper half of its middle post-crisis trading range, which extends up to 128. Its short-term technical indicators strengthened throughout the week.

Asian Economy – Stocks Surge

According to a highly reputed web economy blog,indicating a strengthening economy, Asian stocks put in a strong performance over the past week or so, posting their best week from the month of May back in 2009 and driving the bellwether MSCI Asia Pacific Index up 7.4% to 124.54 as of Friday; the general trend across the region, however, was quite erratic.

India’s BSE Sensex 30 was up 5.8% on the week to 17,760 as of mid-morning local time Friday. Short-term technical indicators indicated relatively encouraging trends for the market and the economy this week despite highly variable volatility.
In Shanghai, the SSEC is at 2,464 as of early afternoon local time, up 6.3% on the week. Momentum and other short-term technical indexes reversed to strong-positive, even as volatility remained relatively steady.

In Northeast Asia, both exchanges indicated moderate gains for the week. The KOSPI’s volatility saw a steady decline as the week progressed even as short-term technical indicators generally improved and the index teased the overbought level without crossing over; all in all, a good sign for the regional economy.