Asian financial markets have done really well during 2017. Those investors betting on a recovery of Asian stock exchanges were fully successful. Especially well have the China and Korea Stock Exchange, supported by good growth in the world economy, which has generated substantial profits in much-weighting sectors such as technology, real estate and building materials. Some other stock exchanges in the region have not done it wrong, but their performance has been more discreet: Asutralia, Philippines, Thailand, even the Hong Kong Stock Exchange has performed low against the rest. Professional analysts continue to bet on investing in Asia, overweight stockings that have behaved more discreetly, compared to those that have done better. In this regard, exposure to China should be reduced, and the Hong Kong Stock Exchange or the Japan Stock Exchange should be overpondered.
THE HONG KONG BAG
The Hong Kong Stock Exchange is one of the 8 largest stock exchanges in the world. To win trading on the Hong Kong Stock Exchange, it is best to use it in one of its representative indices.
The Hang Seng, collects the 33 most capitalized companies on the Hong Kong Stock Exchange, which account for 65% of the capitalization of the entire Stock Exchange. The criterion by which the shares that make up it are weighted is capitalization. The higher the capitalization of a company, the greater its weight and influence within the Index. Despite not being the benchmark for the Chinese Stock Exchange, within this index we have some of China’s largest companies: Hutchison Whampoa Ltd, Sinopec Corp, China Mobile Ltd, COSCO Pacific Ltd, Hang Seng Bank Ltd. Another tracked index, which represents much better the evolution of the Hong Kong Stock Exchange, is the FTSE Hong Kong 50. For the composition of the index, securities listed on the Hong Kong Stock Exchange belonging to the FTSE All-World are used.
REAL-TIME LISTING OF FTSE HONG KONG 50
This is the real-time chart of the FTSE Hong Kong 50 today. The best way to take advantage of the short-term movements of the Hong Kong Stock Exchange is to use Cfs over the FTSE Hong Kong 50.
With Cfds you can trade up or down, taking advantage of the volatility of the index, not to mention leverage, which allows us to increase operating profits.
THE JAPAN STOCK EXCHANGE
Another of the Asian financial markets of great interest to invest is the Stock Exchange of Japan. The Tokyo Stock Exchange is one of the largest exchanges in the world by trading, behind the New York Stock Exchange and at the level of the Sao Paulo Stock Exchange. The Japan Stock Exchange’s best known and traded index is the Nikkei 225, although everyone knows it as Nikkei. It is composed of the 225 most liquid securities on the Tokyo Stock Exchange, and the securities that make up it weigh by its trading price, and not by the market capitalization of the shares. To give you an idea, a value worth 100 weights much more than one worth 10, even if the capitalization and therefore company size, is greater for the listed one worth 10, than for which it is worth 100.
NIKKEI REAL-TIME QUOTE
This chart corresponds to the Nikkei’s real-time quote today. As you can see, opportunities arise to win by trading on the short side and on the long side, the important thing is to be in the right place to win.
WIN WHEN ASIAN FINANCIAL MARKETS FALL
These two stock indices are the most closely tracked asian financial markets. His movements have great volatility, generating daily movements of hundreds of points… a lot of money to earn if we operate properly. No matter if the markets go up or down, we can always win by trading Cfds. The great advantage that The Cfds give us, is that we can bet down or up. If the markets go down we will sell Cfds in the open, which we will then buy cheaper, pocketing the difference. Another of the great advantages of Cfds over Asian indices is the allowed leverage. With a small account, you can trade in these markets and win. If we could not leverage, markets would be limited to a few traders. It is not necessary to have an account with thousands of dollars, a small account will generate profits, if we use the technical tools correctly at our disposal.
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