Unrealistic
Article Abstract:
Pacific Rim stock prices are likely to be affected by sharp drops in earnings in 1998, and profit forecasts are being downgraded. Stock prices do not fully reflect the impact of falling earnings, according to BT Alex Brown. Consumer spending is likely to be affected by rising unemployment and a reduction in wealth due to the stock market crash. Overcapacity and high interest rates will deter investment. Governments cannot use fiscal policy to boost demand, and exports are hampered by lack of finance. This could lead to depressed Pacific Rim economies for a number of years, and investors should wait until stock prices fall further.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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The Asian crisis is over, but look before you leap
Article Abstract:
Conditions in Asian stock markets have improved as stock prices recover from the Asian crisis, and this reflects improvements in economic growth and profits. There are still risks that investors should bear in mind such as the danger that China could devalue its currency, and risks arising from lack of commitment to corporate restructuring. The latter is especially true of South Korea where Daewoo and Hyundai have yet to continue their restructuring. These risks can also be exaggerated, and the market may benefit from measures already undertaken.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1999
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The Far East
Article Abstract:
Asian stock prices dropped in late 1997 and early 1998 and have yet to recover by Jun 1998. Stock picking has become an important skill in this market and there are problems with lack of transparency and accountability. There has been increased emphasis on corporate governance. Some markets such as Taiwan and Hong Kong are seen as less risky than Malaysia and Indonesia which have yet to tackle the problem of debt restructuring in agreements with international agencies.
Publication Name: Investors Chronicle
Subject: Business
ISSN: 0261-3115
Year: 1998
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