Business

Yen keeps dropping as Asia strengthens

It’s interesting that the last couple of months, Asian currencies have been stronger against the dollar and the euro due to confidence of asian stock trades. But truthfully, did anyone really think otherwise?

While Japan’s economics has been in the dumps for a while now, and the Shanghai index has been on a roller coaster ride, the economics of the major countries in Asia have been one of the driving forces behind much of the world financial growth. One very prominent trading area currently are ETFs (exchange-traded funds) where in February of 2008, WisdomTree started the India Earnings Fund (EPI: 12.01 0.00%) which was the first India-only focused ETF. A month later, Powershares introduced the Powershares India Portfolio (PIN: 13.05 0.00%). Both of these show that the growth of these markets have obviously gained the respect of investment portfolio managers to actually have their own focused funds.

The other gigantic major up-and-coming player is China. In 2005, Barclays introduced the FXI (FXI: 31.46 0.00%) which was the first China-focused ETF. On top of this, many of the Chinese corporations that have traded on the NYSE and NASDAQ have done fairly well such as Sina Corporation (SINA: 24.68 0.00%).

All in all, if you’re looking to invest in world markets, there is definite some growth happening in the Far East. And with all everything going on there, the rewards seem to be worth the risk according to the professional investors. And while I could be out of my league in saying this, but hanging off the coattails of those that know-better is probably never a bad thing when it comes to financial speculation.

Photo Credit: (7E55E-BRN)

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