The uncertainty surrounding Europe’s debt crisis continue to hinder markets worldwide. Major indices in Europe and US edged lower on Monday as Greek leaders try to reach an agreement on a rescue passage. Read more here.
Chinese shares have fallen with the prospect of slower economic growth. The IMF, in a report on China’s outlook, highlighted their vulnerability to global demand and estimated Chinese growth could fall by as much as 4% in an extreme downside scenario. In light of this negative outlook, China is trying to attract more investment by changing its strategies with Yuan. E Fund Management, one of the China’s largest asset managers, has given Hong Kong investors the option of investing Yuan directly in mainland stocks and options for the first time. Read more at the BBC.
Similarly Hong Kong is opening up as well with Chinese regulators accepting an application for an ETF (exchange traded fund) linked to Hong Kong shares.
Global growth concerns are having little impact on Indonesia, which grew by 6.5% in 2011, a 15 year high. Unlike other Asian economies, Indonesia is not heavily reliant on exports to the EU and US. Growth was driven by robust domestic consumption and increased investment. With strong growth and the recent upgrade of Indonesia’s debt rating, a confident government is even considering a re-denomination of the local currency (rupiah). Indonesia company registration, which allows 100% foreign ownership, has potential for being an attractive strategy for entrepreneurs wanting to incorporate in Asia. Read more here.
Australia home loan holders would be disappointed after the Reserve Bank of Australia surprised the market by leaving rates unchanged at 4.25%. Part of the resulting effect was to cause the Australian dollar to climb to a 6-month high. Analysts had expected cut of 1/4% due to global growth concerns and a low inflation environment. Read more on ninemsn.