Asian market life is the home of stock and securities’ trading that has a history dating back more than 100 years. In Asia, stock and securities trading dates back to 1866 and a stock exchange have existed in Hong Kong since 1891. Hong Kong boasted two stock exchanges awaiting the end of World War II and in 1947 they combined to form the Hong Kong Stock Exchange, which conquered the Asian market until 1969.
The terrific growth of Far East economies in the early 1970s saw the making of three other Asian stock exchanges, including the Far East Exchange founded in late 1969. The four stock markets combined to become the modern Stock Exchange of Hong Kong in 1986.
Asian market life Miracle
The increase of stock and securities trading in Asian market life over the past 20 years is due in part to what was known as the “Asian Miracle,” which saw almost one-half of financial capital being invested in increasing nations flowing into the Pacific Rim, as the region also is known. Aside from Hong Kong, the jewel of capitalism in Asia, the economies of countries such as Thailand, Singapore, Indonesia and South Korea also saw an infusion of foreign money.
During the 10-year period from 1985 to 1995, the Thai economy grew at a rate of 9 percent a year and South Korea lines as the world’s 11th largest economy. The thriving economic climate and positive financial projections resulted in a big increase in stock prices and overly hostile conjecture.
Asian Market Life Crisis
As with financial conjecture in the United States, the extreme investment in dangerous deals reached a head in mid-1997 and boom turned to bust. Based partly on silent real estate dealings in Hong Kong and other Pacific Rim countries, the Asian market life took a plummet. Instead of centering on the New York Stock Exchange, night by night news carried reports of the slouching Hong Kong market. The terms “Hong Kong” and “stock market” became precursors of terrible news.
This affects currencies, stock markets, and the prices of other assets of some South East Asian economies. In accumulation to real estate conjecture and over investing in dangerous enterprises in Asia, the crisis also was triggered by events in Latin America, which never saw boom times. As a result, western investors lost confidence in Asian securities (and the developing world in general) and began to drag money out, producing a snowball result.
The Future of the Asian Market Life
Asia’s big economic differences are a basis of main continuing tension in the region. While global monetary powers China, India, South Korea and Japan continue powering through, and Malaysia, Thailand, Vietnam Indonesia and Philippines have entered the path to long-term growth, regions right next to these countries are in severe need of assistance.
Given the big number cheap and amply accessible labor in the region, mostly in China and India, where large workforces supply an economical benefit over other countries, the increasing standard of living will ultimately lead to a slow-down. Asia is also puzzled with political problems that intimidate not just the economies, but the general steadiness of the region and world. The nuclear neighbors Pakistan and India continue posing a threat to each other, causing their governments to heavily invest in military spending.
Military interference by the United States in Iraq and Afghanistan has also inflamed extremism and resulted in several terrorist attacks in a number of Asian countries. Another imminent crisis is the depletion of oil reserves in the Middle East. Most of these economies have traditionally been over-dependent on oil and have had difficulty establishing another pillar in Asian market life economies.