The question everyone wants to know is When will things get better? I am talking about Asia in particular and Asia has a very serious concern that investors in US, Europe and Japan might choose to part ways for the time being.But an Asian Economic Report by HSBC seems to think that the prospects for Asia are positive. The report states, "Fundamentally, we remain of the view that Asia does not suffer from the same financial dislocations seen in the West. As we mentioned previously this should set up the region for an ultimately faster rebound once global financial market uncertainties begin to abate. Therefore, with perhaps the exception of Korea and India, most of the latest financial rescue measures are defensive in nature, rather than indicative of elementary financial vulnerabilities. The primary concern of policy-makers in Asia is to shore up growth. Other measures, such as blanket deposit guarantees and emergency local liquidity injections, therefore appear unlikely across the region, although a number of central banks may continue to provide dollar liquidity directly into local markets to ease external funding strains".
I personally believe that the Asian markets will see a run up only post a short term consolidation. This might take between 3 to 18 months to happen, depending on other economic indicators. The Corporate Results for the coming quarter will be the crucial indicator. If everything goes as planned, then Asia might see itself as the leader of global economic revival by the end of August 2009.
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