Stock Indices of China, S Korea, Taiwan, Hong Kong and Singapore

How did the so-called 4 Asian Tigers and China perform in the face of current economic climate?

The forecast for these economies as projected by IMF in their World Economic Outlook Report (April 2014) are in the table below. It shows annual rate of change in Real Gross Domestic Product (Real GDP).

  2013 GDP Proj 2014 Change
S Korea 2.8 3.7 + 0.9
Taiwan 2.1 3.1 + 1.0
Hong Kong 2.9 3.7 + 0.8
Singapore 4.1 3.6 – 0.5
China 7.7 7.5 – 0.2

IMF sees improvement in GDP numbers for South Korea, Taiwan and Hong Kong for this year. It is slower growth for Singapore and China compared to 2013.

How were stock markets reacting to this set of economic data? The stock indices below tracked data-points on 2 Jan 2013, 2 Jan 2014 and 7 May 2014. The Change in stock indices is between 2 Jan 2013 and 7 May 2014.

Stock Indices 2/1/2013 2/1/2014 7/5/2014 Change
Shanghai Composite 2276.99 2109.39 2027.35 -11.0%
Hang Seng Index 23,311.98 23,340.05 21,746.26 -6.7%
KOSPI Seoul Composite 2031.1 1967.19 1939.88 -4.5%
STI 3201.74 3174.65 3236.43 1.1%
Taiwan Weighted 7779.22 8612.54 8893.22 14.3%

Shanghai Composite was worst performer at 11% decline. Followed by Hang Seng Index (-6.7%) and Kospi Seoul Composite (-4.5%). STI moved higher by mere 1.1%. Taiwan was star performer at 14.3% jump.

My question is whether there can be better performance for markets such as S Korea, China and Hong Kong. Have the investors neglected these markets?

Copyright © 2014, limkimtong for Living Investment

The material presented is intended to be general and written in layman’s language as much as it is possible. The author shall not be liable for any direct or consequential loss arising from any use of material written. Please seek professional advice from your financial advisor or financial institutions on material written covering financial matters.

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