The Asian markets have finally begun to pick up after its drastic slump in the past few months. With China and Japan being the leading forces in the Asian markets, there seems to be hope now for the Asian markets as China and Japan especially seem to be on the upward rise again. In the beginning of 2016, Asian markets experienced an ominous slump which worried investors from around the world. European markets are still undergoing some turmoil but seem to be fairly resilient as well.
Japan’ NIKKEI was one of the surprising front runners after the long period of recession the country has been going through. The NIKKEI climbed by 0.9 percent. Which evinced a six percent surge in the market points. Chinese markets were the other resilient forces in the market. The Hong Kong Hang Seng composite rose by 1.37 percent and the Shanghai composite grew by 0.78 percent. As a holistic approach, the entire market seems to be growing together which could mean a good year ahead for the Asian economy.
Oil markets and Japanese monetary policy
The Japanese however have exercised cautious optimism. Prime Minister Abe has been quite stringent with his monetary policy applied in the Japanese nation through its central bank, the Bank of Japan. Experts attribute the rise in markets to the slight rise in oil prices in the market. The oil market seemed to have witnessed a minor growth spurt, which could come in handy for some nations that are dependent on the oil commodities market. The drop in American Shale operations have also been a partial reason for the markets across the world to pick up. The conventional markets around the world that depend on oil seem optimistic about the outcomes.
Global weather conditions seem to be moving towards a warmer outlook which is another reason why people’s energy needs have reduced drastically through the need of oil. The United States did however, witness a sudden cold spurt which many experts attribute as the reason for the rise in oil prices. Crude oil closed at 32.71 dollars this past week. As the markets look to recover, the investors and experts are still wary of the Japanese monetary policy that will play a large role in the future of the markets in Asia. It is a wild card and the interest rate change could spell a disaster for Japan, and in turn Asian markets, if it isn’t done so carefully.