Asia Edge Archive

Recent developments in India have led me to reevaluate my opinion of investments in the country -- and I'm excited to finally have this quickly-growing nation as an investable opportunity. In fact, I'm already seeing opportunity in an Indian company that is benefiting from the vibrant growth of the Indian economy in general, and particularly the rise of the Indian consumer class.

As one of the hottest trends in China, we took full advantage with our trade in this Chinese online game developer. It also provided us a way to profit from the booming IPO market in China. However, we took profits in the company after it couldn't reach the same rate of growth. Additionally, new regulation from Chinese authorities are putting too much uncertainty in the future of online gaming in China -- banning foreign investment, which is a negative even for domestic online game operators.

Coal demand simply exploded in early 2009 -- doubling the share price of our play on China's astonishing economic growth and energy demand. We picked up this company at rock-bottom prices in expectation of the boom driven by China's stimulus package. But now, with China reopening idled coal mines, coal prices are likely to fall, curbing profits for the company and jeopardizing the rally that we've enjoyed so far.

Not much has changed for the better since I gave my 2009 economic outlook for Russia in January of this year. Though their stock market has had a nice run of it, their economy continues to suffer. In fact, even Russian officials don't expect their economy to fully recovery until perhaps 2012. For now, I expect Russia's recovery to be volatile and more difficult to predict -- so we'll continue to avoid the country and focus on more profitable opportunities elsewhere in Asia.

Though this state-owned enterprise remains the world's largest telecom provider, the company's growth has faltered in recent months. Primarily, this is because of an increasingly-saturated market and the rise of intense competition for wireless customers in China. As a result, I think it's time to take our gains and move on to more profitable opportunities in China.

After the worst financial and economic crisis since the Great Depression wreaked havoc on the world, most economies are looking for change. And in many cases, citizens have taken it into their own hands, electing new governments that they expect to bring about this "change." Just last week, Japan's ruling party, the Liberal Democratic Party, suffered defeated at the hands of the Democratic Party of Japan in the country's recent election. Whether this is a good move for the country is yet to be determined...

Now, I've been avoiding investments in India for some time. This is because the country can be baffling -- the numbers look good on paper, but when you visit, the country is an absolute mess. However, though I'm still cautious, I think it might be worth looking into India for some trading opportunities. As market conditions improve, there may be some exceptional profits to be had.

Dining out is huge in China -- which is why I recommended Yum! Brands to my China Strategy subscribers some time ago. However, it's now time to take profits due to increased competition and a dimming of YUM's prospects. Their last earnings report was still positive, but showed a definite slowing in growth. However, I still smell opportunity in China!

The World Bank's projection for the global economy, as you know, sent global stock markets spiraling lower earlier in the week. Many of these markets bounced back later in the week, including Japan. Despite the Japanese stock markets rebounding, I still believe that Japan is still suffering from a deep recession that will last through this year and into 2010 -- a fact that will likely weigh on the country's stock markets.

After falling nearly 80% from their peak in July 2008, crude oil prices have started to move higher. Currently, oil per barrel is trading around $70 -- something I've been projecting all year long. To reflect the jump in crude oil prices, China's National Development and Reform Commission lifted retail prices for gasoline and diesel on Monday. This move bodes well for Asia's leading oil refiner. As the number-one supplier of gasoline and other oil products to China, this state-owned enterprise will benefit nicely from elevated oil prices. In the past three months alone, the company's shares have popped nearly 60%.

North Korea has caught the world's attention in recent weeks with its nuclear device testing and short-range missile firing. While nations like the U.S., Japan and South Korea are working hard to suspend shipments to North Korea and cut financial relationships with the nation, China's action holds the biggest influence. That's because China is North Korea's biggest ally and largest trading partner. So when China announced that it was suspending government exchanges with North Korea this week, it caught everyone's attention.

Over the weekend, it was announced that India's Congress Party had won the country's political election with Manmohan Singh becoming the new Prime Minister. Indian's and investors alike cheered this recent development, pushing India's Sensex index up 17% in trading on last Monday. While this is a positive development for India, I remain hesitant that this equals brighter skies ahead for Asia's third-largest economy.

The Chinese government continues to take advantage of the lower energy prices, creating deals to secure energy resources at low levels. These efforts were exemplified recently in the deals that Sinopec is working on with Brazil and Exxon Mobil. And these deals bode well for Sinopec's shares going forward.

India's stock exchange has taken great strides so far this year, rising around 23%. And many people have asked me if that means it's time to start investing in India again. But I still see a number of trends that are weighing heavily on India's economy and will likely hamper economic growth there in the months ahead.

When 2009 began, investors were unsure about how this year was going to shake out. The first months of this year were surely ones for the history books, in terms of economic happenings and stock market moves. So let's recap what happened in the first quarter of 2009, and discuss what we can expect in the second quarter of this year. In addition, I talk about the best region to invest your money.

While many investors are still shying away from putting their money to work in the current environment, I've been recommending that my Asia Edge subscribers pick up strategic trades in industries showing strength this year. One industry, in particular, that's caught my attention is technology. My latest recommendation is a Taiwan semiconductor manufacturer that's up 17% year to date.

Many investors -- myself included -- have high hopes for India's economy. The country has lots of useful resources, and its businesses are overflowing with once-in-a-lifetime investment opportunities. But unfortunately, this high potential is being overshadowed by the global economic crisis, as the country is being hit hard.

Ever since the end of 2008, the relationship between Israel and Palestine has been strained. After Palestinian militants fired on Israel, Israel returned fire with air attacks on the Hamas-ruled Gaza Strip. As long as the conflict continues, it will likely weigh heavily on the region's economy and stock markets.

If you've read my commentary on India before, then you know that I've been avoiding investments in the country for awhile now. While India has posted robust economic growth in recent years, viable investments are hard to come by there. That's because Indian companies aren't closely regulated or well-ran, leaving them open to scandals like the current one at Satyam Computers.

Like much of the world, the economic picture is not very bright for Russia in 2009. The country is suffering from an economic slowdown, and may even slip into recession this year. What caused the Russian economy to take a turn for the worst after seven years of robust growth? A variety of things weighed heavily on the country this year including the drop in oil prices, the war with Georgia and its depreciating currency.

As a year that was already plagued with one of the worst economic and financial crisis of all time drew to a close, tensions rose in Asia. In the last month of 2008, a number of nations in Asia were victim to conflicts and terrorist attacks.

It's no secret that the domestic and global markets have been on a roller coaster ride during the past few weeks. The fears of a global recession are at astounding highs, and even though governments around the world have made moves to calm the panic, markets are still trading wildly. So what does all of this volatility mean for Asian stocks, and is there any way for us to make money now? Read on to find out!

While we have watched stock markets around the world fall to dramatic levels, we have also seen commodity prices drop to shocking lows. The commodity boom has come to an end, and we have taken nice profits on several of our commodity plays. But now what should we do with those profits? Read on to find out.