By Ian C Sayson
September 12, 2018, 12:38 PM GMT+8 Updated on September 12, 2018, 4:33 PM GMT+8
MSCI Asia Pacific falls for tenth consecutive session
The benchmark MSCI Asia Pacific Index fell for a tenth consecutive day Wednesday, extending its recent decline to almost 5 percent and bringing the loss in value to almost $700 billion this year.
And there’s a slew of reasons: trade, the U.S. dollar, emerging-market turmoil and the bear market in Chinese stocks to name but a few.
“Asian stocks have been caught in the middle of increasing trade tensions as well as the rising dollar and emerging market contagion, and certainly China weakness is also adding fuel to the fire,” said Nader Naeimi, head of dynamic markets at AMP Capital Investors Ltd.
Most individual Asian stock markets fell Wednesday, with Japan’s Topix index closing 0.5 percent lower while the Hang Seng Index fell further into bear market territory with a 0.3 percent drop. Meanwhile, the Shanghai Composite Index came close a four-year low, ignoring policy makers’ attempts to lift sentiment.
Free Falling: Asian stocks are declining for 10th straight day, the longest streak since 2002
Here’s what strategists are saying about the current state of play in Asian stocks:
Emerging Market Spillover
“There’s more contagion coming from Turkey and Argentina events to the more externally susceptible economies like Indonesia and Philippines,” said Ken Peng, strategist at Citigroup Inc. Both Southeast Asian nations have “double deficits, they have inflation that is relatively high and rising. And their reserves are falling.”
Read more: Emerging Value in Asia Stocks Not Enough to Win Investors Back
Trade
The “clear concern” in the short term is trade tensions, said Michael McCarthy, Sydney-based chief market strategist at CMC Markets. While signs of a de-escalation would be positive, that seems unlikely in the current environment, he added.
“The biggest risk is trade,” Citi’s Peng said, citing that “people are very afraid of” the additional $200 billion in tariffs. He noted that the midterm elections on Nov. 6 is key and trade tensions may dissipate after that.
Greenback
The slump in Asian stocks is mainly due to the continued strength of the U.S. dollar against emerging-market currencies, Paul Kim, chief investment officer at Eastspring Investments said. He expects an outflow from emerging markets with the Federal Reserve still on course to increase interest rates.
Still Bearish:
“We maintain a bearish stance on Asia and EM equities and expect further downgrades to consensus earnings estimates in coming months,” said Jonathan Garner, managing director at Morgan Stanley, citing “a slowdown in China’s growth consequent upon credit tightening” and weaker demand in autos and technology hardware.
Premature
“Asia is certainly cheaper and oversold now than the start of the year, and in my view closer to the end of its falls than the beginning. But given the risk around U.S. equities and the fact that any falls in U.S. equities will lead to a broad global risk-off sentiment, I suggest, it maybe premature to go in yet,” AMP’s Naeimi said.
Some Optimism
“We see that light at the end of the tunnel, but we’re still kind of in the darkness ourselves,” Citi’s Peng said. Investors need more concrete catalysts before they step in to buy stocks. “So that’s the challenge for money mangers.”
“We are looking to be more constructive on Asian equities in the next quarter, if the current correction continues. Valuations will be more attractive and worth a look then,” said Jason Low, senior investment strategist at DBS Bank Holdings Ltd.
“The good news is that valuations are looking more attractive now and technicals are oversold, which suggest that Asian stocks could be poised for a rebound in the next few months,” Jasslyn Yeo global market strategist as JPMorgan Asset Management.
— With assistance by Heejin Kim, Min Jeong Lee, Abhishek Vishnoi, Livia Yap, Moxy Ying, Matthew Burgess, and Matt Turner
Eventually after a short time I get fed up with losses and just go back to what I've always made money on which is real estate.
Why take a risk on stocks when you have in Bali a real estate market which from the turn-of-the-century to 2014 had prices increasing 10% to 20% per annum.
Starting in 2014 we had the first downturn in Bali Real Estate in modern history. Prices collapsed 20% to 50%. I stopped buying at that time.
Since the last year I have been telling friends and clients that prices had bottomed out and now is the time get back in.
You can now buy beachfront properties at 50% off their 2014 highs.
The average piece of land is down 30%. Villas are also down an equal amount.
As Baron Rothschild said you must "buy when the blood is running the streets".
Over the next couple months we will be providing educational seminars throughout Asia and Australia on the Best Bali Real Estate Investments Opportunities.
Included in our my seminars will information on a brand-new investment, Bali Luxury Retirement Villas that you can purchase starting at $208 per month for 80 years and rent out for retirees at $1,500 to $2,000 per month.
If you want to get involved now's the time to sign up for one of our forthcoming free seminars listed below.
You have nothing to lose and everything to learn.
Earn 10% to 20% per yr. - Free Bali Real Estate Seminars – Foreign Ownership Laws Clarified – Properties up to 50% off
Free Bali Real Estate Seminars:
Whether you are a buyer, seller, broker, agent, investor, lessor or renter you can benefit from attending one of our two free Real Estate Seminars in Bali this month.
At these seminars PT. B.A.L.I’s Canadian President, Lawrence, a 22 yr. Bali resident, President of 14 yr. old company with 135 staff, married to Azizah, a fully Licenced Notaris will review the most recent real estate laws for Indonesians and Foreigners in detail.
Then they will also provide a full colour audio, visual presentation with many professional charts on the Past, Present, and Future of Bali Real Estate.
Or Email: seminarsptbali@gmail.com or Tel: Office: 62-361- 284069 For Bahasa English 62-8123814014 – Bahasa Indonesia or 62-8123632177
“Asian stocks have been caught in the middle of increasing trade tensions as well as the rising dollar and emerging market contagion, and certainly China weakness is also adding fuel to the fire,” said Nader Naeimi, head of dynamic markets at AMP Capital Investors Ltd.
Most individual Asian stock markets fell Wednesday, with Japan’s Topix index closing 0.5 percent lower while the Hang Seng Index fell further into bear market territory with a 0.3 percent drop. Meanwhile, the Shanghai Composite Index came close a four-year low, ignoring policy makers’ attempts to lift sentiment.
Free Falling: Asian stocks are declining for 10th straight day, the longest streak since 2002
Here’s what strategists are saying about the current state of play in Asian stocks:
Emerging Market Spillover
“There’s more contagion coming from Turkey and Argentina events to the more externally susceptible economies like Indonesia and Philippines,” said Ken Peng, strategist at Citigroup Inc. Both Southeast Asian nations have “double deficits, they have inflation that is relatively high and rising. And their reserves are falling.”
Read more: Emerging Value in Asia Stocks Not Enough to Win Investors Back
Trade
The “clear concern” in the short term is trade tensions, said Michael McCarthy, Sydney-based chief market strategist at CMC Markets. While signs of a de-escalation would be positive, that seems unlikely in the current environment, he added.
“The biggest risk is trade,” Citi’s Peng said, citing that “people are very afraid of” the additional $200 billion in tariffs. He noted that the midterm elections on Nov. 6 is key and trade tensions may dissipate after that.
Greenback
The slump in Asian stocks is mainly due to the continued strength of the U.S. dollar against emerging-market currencies, Paul Kim, chief investment officer at Eastspring Investments said. He expects an outflow from emerging markets with the Federal Reserve still on course to increase interest rates.
Still Bearish:
“We maintain a bearish stance on Asia and EM equities and expect further downgrades to consensus earnings estimates in coming months,” said Jonathan Garner, managing director at Morgan Stanley, citing “a slowdown in China’s growth consequent upon credit tightening” and weaker demand in autos and technology hardware.
Premature
“Asia is certainly cheaper and oversold now than the start of the year, and in my view closer to the end of its falls than the beginning. But given the risk around U.S. equities and the fact that any falls in U.S. equities will lead to a broad global risk-off sentiment, I suggest, it maybe premature to go in yet,” AMP’s Naeimi said.
Some Optimism
“We see that light at the end of the tunnel, but we’re still kind of in the darkness ourselves,” Citi’s Peng said. Investors need more concrete catalysts before they step in to buy stocks. “So that’s the challenge for money mangers.”
“We are looking to be more constructive on Asian equities in the next quarter, if the current correction continues. Valuations will be more attractive and worth a look then,” said Jason Low, senior investment strategist at DBS Bank Holdings Ltd.
“The good news is that valuations are looking more attractive now and technicals are oversold, which suggest that Asian stocks could be poised for a rebound in the next few months,” Jasslyn Yeo global market strategist as JPMorgan Asset Management.
— With assistance by Heejin Kim, Min Jeong Lee, Abhishek Vishnoi, Livia Yap, Moxy Ying, Matthew Burgess, and Matt Turner
_________________________________________________________________________
Best Asia Real Estate Editor's Comments:
 |
| Editor: Lawrence Playing the Markets while in Europe |
Every time I get a fair amount of cash I make a fatal mistake of investing in stocks that I think have great opportunities.
The problem is by time you hear about something on the news it's usually too late. In fact you should be a contrarian and sell the investment on good news, not buy it.Eventually after a short time I get fed up with losses and just go back to what I've always made money on which is real estate.
Why take a risk on stocks when you have in Bali a real estate market which from the turn-of-the-century to 2014 had prices increasing 10% to 20% per annum.
Starting in 2014 we had the first downturn in Bali Real Estate in modern history. Prices collapsed 20% to 50%. I stopped buying at that time.
Since the last year I have been telling friends and clients that prices had bottomed out and now is the time get back in.
You can now buy beachfront properties at 50% off their 2014 highs.
The average piece of land is down 30%. Villas are also down an equal amount.
As Baron Rothschild said you must "buy when the blood is running the streets".
"Buy when the blood is running the streets"
With constant increases in tourism,new buyers from China and and Baby Boomers there's no question in my mind that this next 5 to 10 year period will be the second best Bali real estate market this century.
"The second best Bali real estate market this century"
Over the next couple months we will be providing educational seminars throughout Asia and Australia on the Best Bali Real Estate Investments Opportunities.
Included in our my seminars will information on a brand-new investment, Bali Luxury Retirement Villas that you can purchase starting at $208 per month for 80 years and rent out for retirees at $1,500 to $2,000 per month.
If you want to get involved now's the time to sign up for one of our forthcoming free seminars listed below.
You have nothing to lose and everything to learn.
Earn 10% to 20% per yr. - Free Bali Real Estate Seminars – Foreign Ownership Laws Clarified – Properties up to 50% off
_________________________
Are you tired of traditional investments such as banks and bonds that only offer 1-6% per year which do not keep pace with the real inflation.
Do you want to become rich the way over 60 % of self-made millionaires did?
_________________________
Are you tired of traditional investments such as banks and bonds that only offer 1-6% per year which do not keep pace with the real inflation. Do you want to become rich the way over 60 % of self-made millionaires did?
 |
| Speaker Lawrence, Notaris Wife Azizah and Family at his Bali Paradise Beachfront Estate |
Whether you are a buyer, seller, broker, agent, investor, lessor or renter you can benefit from attending one of our two free Real Estate Seminars in Bali this month.
 |
| Bali seminar attendees January 2018 |
At these seminars PT. B.A.L.I’s Canadian President, Lawrence, a 22 yr. Bali resident, President of 14 yr. old company with 135 staff, married to Azizah, a fully Licenced Notaris will review the most recent real estate laws for Indonesians and Foreigners in detail.
Then they will also provide a full colour audio, visual presentation with many professional charts on the Past, Present, and Future of Bali Real Estate.
Free Seminar Schedule:
Location: Bali, Emerald Villas, Jl. Karangsari, # 5, Sanur, Bali, Indonesia.
Dates & Times:
Dates & Times:
- Thursday - Oct 4th. 6:30 PM - 7:45 PM
- Saturday - Oct 6th. 2:00 PM - 3:15 PM.
Seminar Topics:
At these seminars you will learn about:- The Past, Present and Future of Bali, Indonesia, Asian and Australian real estate.
- Why a recent official clarification of foreign ownership laws allows foreigners to totally control Indonesian properties for up to 80 years without leases?
- How to avoid legal problems and make sure a property is safe.
- How to avoid complicated real estate laws affecting Indonesians married to foreigners.
- Why this is the second best time to buy this century.
- Where are the best locations to buy for maximum profits?
- What type of properties will offer the best investment potential of *10% to 20 % per year?
- Discover how you can sell your property fast for the highest prices and lowest commissions on a brand new web site designed after the largest most successful real estate site in America with high tech search features.
- An opportunity for a free listing on B.A.R.E. First Class Beachfront property at almost 50% discount.
- A Quality 5,000 m2 Bali Hotel with 12 bungalows, 3 pools and Restaurant for only $588,000.
- Low cost properties with Luxury Villas starting as low as $158,000 for a three bedroom 650 m² 3 bedroom, 4 bath with private 9 mtr. Pool.
- Ridiculously low priced ocean view building lots starting as low as $25,000 for 500 m².
- Brand new Bali Luxury Reiremnmet Villas starting at $208.00 per mth.
Limited Seating & Free Parking: Seating is very limited for these free seminars so please avoid disappointment and make reservations A.S.A.P. Click Here For a Reservation
Or Email: seminarsptbali@gmail.com or Tel: Office: 62-361- 284069 For Bahasa English 62-8123814014 – Bahasa Indonesia or 62-8123632177
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