Asia Region: The Major Investment Destination of the Global Stock Market Not to Be Missed

Why Are Asian Stock Indices Worth Following Right Now?

When it comes to foreign investment, most investors tend to focus only on the US or European markets, overlooking the rapidly growing Asian stock markets. In fact, when talking about the world’s population, China and India together comprise over 58% of the global population. They are also the most important centers for consumption and manufacturing worldwide.

Many Asian companies are showing promising growth, especially in an era where the global economy faces numerous challenges. Asian stock indices therefore present valuable opportunities for those seeking diversified portfolios.

What Are Asian Stock Markets and Why Are They Important?

Asian stock markets encompass several major exchanges across the region, including Southeast Asia and East Asia, as well as markets in Hong Kong and Taiwan.

Investors can access these markets through various methods, whether by direct stock trading or via mutual funds and ETFs focused on Asian companies.

Interestingly, although Asian stock indices have a low representation in the global stock index (MSCI ACWI), considering the actual GDP, Asia accounts for about 30% of the world’s economic value. This indicates enormous long-term growth potential.

Compared to other regions, leading companies in Asia (excluding Japan) have higher Return on Invested Capital (ROIC) and better growth trends, attracting increased investor interest.

Why Should You Invest in Asian Stock Indices?

☑ Great Investment Opportunities

Asia is a rapidly growing region, and many country markets still have reasonable valuations, making it a paradise for those looking for high-potential companies in the region.

☑ Industry Diversity

Asian stock markets are not only diverse but also cover various sectors—from technology in Hong Kong, steel and minerals in China, to finance in Singapore.

☑ Economic Growth Trends

With a large population and expanding industrial sectors, Asia offers sustainable growth opportunities in the stock markets.

☑ Risk Management Capabilities

Asian stock markets tend to be more stable during global market events, helping to reduce overall portfolio risk.

Where Do Asian Stock Markets Stand Among the World’s Major Exchanges?

Looking at the largest stock markets globally, Asian stock indices cover several of the top markets:

It is clear that many leading Asian markets are among the largest in the world.

Classification of Asian Stock Markets

Main Stock Markets (

• Japan: Tokyo Stock Exchange )TSE(
• Hong Kong: Hong Kong Stock Exchange )HKEX(
• China: Shanghai Stock Exchange )SSE( and Shenzhen Stock Exchange )SZSE(
• South Korea: Korea Exchange )KRX(

) Secondary Stock Markets ###

• India: National Stock Exchange (NSE), Bombay Stock Exchange (BSE), including Calcutta Stock Exchange (CSE) and Madras Stock Exchange (MSE)
• Taiwan: Taiwan Stock Exchange (TWSE), Taipei Exchange (TPEx), and GreTai Securities Market (GTSM)
• Malaysia: Bursa Malaysia (KLSE) and ACE Market

( Asian Markets Beyond the Above )

• Indonesia: Indonesia Stock Exchange ###IDX(
• Singapore: Singapore Exchange )SGX(
• Philippines: Philippines Stock Exchange )PSE(
• Thailand: Stock Exchange of Thailand )SET(

Asian Stock Market Trading Hours: A Complete Guide

For investors wanting to follow the markets, it’s essential to know each market’s trading hours, as Asian stock indices do not operate 24/7. Trading volume peaks during market hours.

Most Important Asian Stock Indices

) HK50: Hang Seng Index, HSI ### This index is a key indicator of the performance of the Hong Kong stock market and the broader Asian region. It is composed of leading companies selected based on market capitalization, calculated by aggregating stock values relative to past periods. This index plays a crucial role in showing trends and market conditions in Hong Kong.

( JPN225: Nikkei 225 ) The Nikkei 225 is Japan’s primary index. The number “225” indicates the number of companies included. It is used to measure the performance and status of Japan’s stock market and reflects the Japanese economy and diverse industrial sectors.

Investors use both indices as primary tools to understand market movements.

How to Choose the Right Time to Trade Asian Stocks

Asian stock indices have shown significant growth potential, especially from late 2022 into 2023, due to easing pandemic control policies and economic stimulus measures from China.

For Long-Term Investors

If your goal is to save for retirement or increase long-term wealth, you can invest according to your plan without worrying about short-term volatility. The key is to maintain a consistent investment commitment.

( For Short-Term Investors Short-term trading requires accurate analysis and regular monitoring of economic news. This type of investment carries higher risks, so careful decision-making is essential.

) Personal Factors Choosing trading times should consider your personal goals, budget, investment horizon, and risk tolerance.

Market Analysis

Decisions should be based on thorough market analysis, considering economic factors, political news, and market trends before investing.

Strategies for Analyzing Asian Stock Indices

Technical Analysis

This method uses price data and trading volume to forecast future price trends. Investors can examine:

• Price Charts: Studying candlestick charts ###candlestick charts### to understand price patterns
• Support and Resistance Levels: Key price levels where prices tend to reverse

For example, looking at the HK50 index on a daily timeframe, it may still be in a downtrend, with prices below the 60-day moving average, indicating no reversal yet.

( Fundamental Analysis ) This approach studies macroeconomic data affecting indices, such as:

• Interest rates and monetary policy
• Fiscal policy
• GDP figures and economic growth
• Inflation rates
• Export-import figures
• Employment rates

Key data examples:

• Japan revised Q2 GDP down to 4.8% from 6% due to reduced private investment
• Japan’s core inflation in November hit 3.7% year-over-year, the highest in 41 years

Steps to Start Trading Asian Stock Indices

After opening an account and preparing, you can begin trading by following these steps:

1. Log into your trading platform
2. Select the Market menu to view current prices
3. Search for Indices to see stock market indices only
4. Choose the Asian stock index of interest, such as HK50 or JPN225
5. Analyze according to your strategy and open a position

Summary

Asian stock markets offer significant investment opportunities, especially in the current global economic environment facing various challenges.

As the spotlight on Western markets fades, Asian indices are gaining momentum with growth potential, particularly China, which plays a key role in driving regional prosperity.

Another important point is that Asia is closer and more accessible; investors receive abundant news from various sources, enabling more precise analysis.

For these reasons, Asian stock markets are an opportunity not to be overlooked, especially for those seeking to diversify and grow their portfolios.