Asian markets have been suffering a drastic spell of bad luck for the past few months. The fall in the Japanese Nikkei index at the beginning last year marked the beginning of the fall in the Asian markets. The markets all across the continent did not fare much better throughout the year last year either. The Chinese economic crash did more than just play a catalysts role.
After the second largest economy in the world crashed it brought down several other nations and their economies along with it. The Chinese government also issued a strong crackdown on any outgoing capital which worsened the situation.
The Asian past
After the Chinese government disallowed foreign investments and Chinese investments from pulling out of the country, many free market investors scampered away with whatever they could take. In light of these market crashes, the Korean markets began feeling a strong fallout of the Chinese markets too.
South Asia, on the other hand, remained relatively unscathed from the economic fallout. Japan on the other hand implemented drastic monetary policies throughout the year under the tutelage of Japanese Prime Minister Shinzo Abe. However, not much of the quantitative easing measures worked too well.
The unsuccessful implementation of various economic policies led Japan to go into a negative interest rate by the Bank of Japan. However, after a long time, the Asian markets seem to be doing slightly better than usual. Asian markets seem to be bouncing back after a very bad financial spell.
Many financial experts attribute the bouncing back of the economy to the strong comeback of the oil market. The oil commodity market also underwent a very problematic phase in the past years. The oil futures dropped to an all-time low until it eventually began to make a gradual comeback.
The oil futures comeback has also boosted trade in the Asian markets once again. Additionally, the sales rate of Apple (NASDAQ: AAPL) seems to be boosting the trade in Asian as well. Apple shares have grown exponentially, which has added to the growth in the Asian markets. The growth in oil markets and Apple shares have also given rise to growth in European markets. European markets have grown by 0.3 - 0.4 percent as of this week. Skeptics still warn that the rise in the markets could be ephemeral and investors must be cautious.