Asian Shares Show Positive Signals

Discussion in 'General Trading Discussion' started by May102014, Jul 2, 2014.

  1. May102014

    May102014 Well-Known Member

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    "Asian shares ticked higher on Tuesday as improved manufacturing data from China, Japan and the United States augured well for global growth, despite a disappointing result from the euro zone. After a sluggish start the majority of markets across the region struggled ahead through the session, pushing MSCI's broadest index of Asia-Pacific shares outside Japan up 0.4 percent. Japan's Nikkei recouped early losses to add 0.05 percent, while Shanghai firmed 0.2 percent. South Korea outperformed with a rise of 1 percent, led by Samsung Electronics Co Ltd and Hyundai Motor Co."

    This is great news but I have a concern regarding the outsource of jobs to different regions. Although Asian shares are increasing due to positive signals seen in economic recovery in the United States and China, do you think there will be a long term impact on America specifically if manufacturing jobs continue to be outsource to other regions? Japan has a very strong presence in manufacturing as well as China. Do you think their ability to produce in demand products at high speeds correlates with their shares on the stock market?


    Read More Here: Asian Shares
     
  2. wander_n_wonder

    wander_n_wonder Guest

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    Asia will remain to be a viable market, at least in the next 10 years, particularly in the North and East Asia region. They have a good balance of cheap operating expenses and, at the same time, skillful manpower. I think it will really perform better than US and Europe in the next coming years, particularly in the areas of manufacturing, construction, banking, and even retail.
     
  3. escdk

    escdk Member

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    I wouldn't be surprised if a lot of the huge companies that have been outsourcing to India and China the past 10-20 years will begin to move more and more facilities back to home countries in Europe and NA. The quality is not always what the customer expects obviously, and I think it will hurt those companies in the long run, it just hasn't set in yet.
    A friend of mine working with quality and system development in IBM has the past year been transferring outsourced jobs from India to China because the reliability was way too low. He believes they will see similar results in China. But of course, this is all speculation from my side.
     
  4. Enceladus

    Enceladus Guest

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    Labor is already cheap in Asia. I think companies should allocate the funds to ensuring that quality is met. Like hiring more supervisors, giving incentives so employees are highly motivated, and other employee rewards.
     
    Last edited by a moderator: Jul 8, 2016
  5. PTrader

    PTrader Member

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    Should be very interesting to see what happens over the next few years. I work with many Asian factories day to day and labor and material costs have been fluctuating so much it is hard to know where things will stand in the next 10 years. The more these low paid workers have contact with first world countries, they are starting to want better labor conditions, so I could see these costs increasing a lot and production shifting. Still some great companies and investment opportunities out there but there is a lot of risk too as so many things are changing rapidly in these countries.
     
  6. Determined2014

    Determined2014 Guest

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    I truelly believe their high speeds have a great part to do with their shares on the satock market.
     
  7. ReinbachThe3rd

    ReinbachThe3rd Active Member

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    I worry about China's stability and their money there. I fear a lot of it is propped up on hot air and the housing problems over there are going to lead to issues later on. It's still a place to get stuff done cheaply but their rumblings are just concerning to me.
     
  8. Profit5500

    Profit5500 Senior Investor

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    Well the Asia has lots of business from other places which is why some people would invest their money into. The stock market for the Asia companies would last that long and longer with greater influence from American buyers and investors. I think that is why Samsung is doing very well just don't know what the value of the shares is going to be.
     
  9. downsouth

    downsouth Guest

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    Also arrival of monsoons have steadied prices.
     
  10. wulfman

    wulfman Guest

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    In India rain has started almost everywhere. Vegetables and groceries were getting expensive due to lack of rain. Now these prices should certainly go back to normal as crops begin to grow again for farmers.
     

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