Asian stocks 2021, which stocks might be worth investing in? Asia is the largest continent consisting of East Asia, Central Asia, North Asia, Southeast Asia, and West Asia and South Asia. Throughout the Asian continent, there are dozens of stock exchanges scattered in each region.
However, Asia’s largest stock exchange in Asia is the Tokyo Stock Exchange in Japan, then Shanghai Stock Exchange in China. Hong Kong Stock Exchange in Hongkong. Shenzhen Stock Exchange in China. Bombay Stock Exchange in India. Next is National Stock Exchange in India. Korea Exchange in South Korea. Exchange of Taiwan in Taiwan. Singapore Exchange in Singapore. Stock Exchange of Thailand in Thailand.
The data is quoted from Wikipedia which lists the top 10 largest Asian exchanges in 2019.
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Asian stock market
Before learning more about stock exchanges in Asia. You need to understand stock price indices in Asia.
The stock price index is a reflection or indicator of stock price movements. The index is used by investors to determine their investment steps in the capital market. In this case Asian stocks.
In Asia, there are several well-known stock indices such as the HSI or Hang Seng Index, the Nikkei Index, and the Kospi Index.
Hang Seng Index
Hang Seng Index then shorted as HSI is a stock market index based on the capitalization in Hong Kong Stock Exchange. HSI is also used to monitor and record all daily changes of all major companies in the Hong Kong Stock Market. HSI is also used as the main indicator of all market performance in Hong Kong.
Kospi is an index consisting of 200 of the best stocks in Korea. The Kospi index covers the entirety of 70% of the value of shares traded on the stock exchange and is a representation of the price of all shares in South Korea.
The Kospi (Korean Composite Stock Price Index) 200 is one of the most dynamic and popular investment products in futures trading. And traded with Option on the South Korean stock index futures exchange, on the Korea Stock Exchange (KSE) division.
The Nikkei is a stock index traded on the Tokyo stock exchange. Nikkei became the average index of Japanese equities and became the best and many investors want to hold the Nikkei index.
The Nikkei is not only famous in Japan but in other countries such as the Singapore Stock Exchange or SGX, the Chicago Stock Exchange or CME as well as the Osaka Stock Exchange shorted as OSE.
S&P Asia 50
S&P Asia 50, is an index of dozens of large companies in Asia that are traded on the exchanges of South Korea, Hong Kong, Taiwan, and also Singapore, where this index also has ETFs listed in America and Australia.
Many of the companies that are listed in the S&P Asia 50 index are companies originating from China.
All Share Price Index (ASPI)
The All Share Price Index (ASPI) is a collection of shares traded on the Colombo Stocks Exchange in Sri Lanka. This index describes the economic condition of Sri Lanka as it consists of the major companies in the country. Besides this index also as another index traded in CSE is Milanka Price Index (MPI).
Kualalumpur Composite Index (KLCI)
KLCI is a stock index owned by Malaysia. In general, KLCI represents the development of the Malaysian economy because KLCI is the shares of large companies in Malaysia.
PSE Composite Index (PHISIX)
The PSE Composite Index represents the Philippine economy because it describes the condition of the big Philippine companies. Even this index price fluctuates as well as other indexes.
S&P CNX Nifty
S&P CNX Nifty is a stock index owned by India, which is a collection of stocks from dozens of major Indian companies, even this stock index price is used for comparison on another derivative trading related to commodities from India.
The SET index is an index of Thailand and is traded on the Thai national stock exchange. This index includes common stock and preferred stock which are listed on the Thailand Stock Exchange. Therefore, it also describes the fundamental condition of the country.
SSE Composite Index
It is an index of shares traded on the Shanghai stock exchange, which is a Chinese-owned index that also consists of a collection of shares of companies in China.
Straits Times Index (STI)
This is an index owned by Singapore that describes the market capitalization on the Singapore stock exchange, STI describes the stock price movements of 30 major Singapore companies.
There are two big indexes in Rusian, RTSI, and MICEX-10. The RTSI is an index for tracking the stocks of 50 companies listed on the MICEX-RTS exchange. Meanwhile, MICEX-10 is an index to track stocks of the 10 most liquid companies on the MICEX-RTS exchange.
Indonesia Composite Index (ICI)
This is an Indonesian stock index that tracks the stock prices of both common stock and preferred stock on the Indonesian stock exchange, also known as IHSG.
Asian stocks market hours
Below is a list of global stock market working hours, for the Asian market, you only need to choose from the existing list from China, Japan, Malaysia, Indonesia, Singapore, Korea, Philippines, Thailand, Taiwan.
Take a note, usually, the Asian stock market will be closed at lunchtime. Data taken from KGI Global stocks.
How to invest in the Asian stock market?
As with any stock market investment, there are several things to pay attention to on how to invest in Asian stocks.
- Learn the fundamentals.
- Follow the news on Asian stocks catalyst.
- Using the Stock Screener.
- Make a watchlist.
- Trade your plan.
Learn the fundamental
Reading fundamentals is the first step to tracking Asian stocks, it aims to understand the condition of the company or index to be tracked which may or may not have good potential.
Maybe not all fundamentals reflect the good potential of securities, but you have to know which ones emphasize the potential positives and negatives.
Follow the news on Asian stocks catalyst
News catalysts often drive prices, so it is very important to keep abreast of the catalyst news updates related to the index or securities selected.
Using the Stock Screener
Using the Stock Screener will make it easier to find stocks that match your criteria, there are many stock screeners that you can use every day, for example, stockstotrade.com, Finviz, yahoo, and so on.
Create watch list
By creating a watch list you can monitor relevant stocks that are likely to be more profitable. That’s a watchlist, which you might be able to use Tymothysykes.
Trade your plan
As in any type of trading, whether forex, crypto trading, investing in Asian stocks also requires an investment plan. If all the steps required have met the criteria. Trade your plans. This will add to your experience and can monitor the progress of your investment as a means of learning investment.
Is now a good time to invest in Asian stocks in 2021?
Still, a debate about Is now a good time to invest in Asian stocks?
According to an analyst from Forbes, it is risky to invest in Asian stocks 2021, especially in Chinese companies. The reason is that the Chinese government has tightened regulations for various reasons that cause problems with the performance of company shares.
Forbes gave an example with the case of Jack Ma, who was under pressure from the government which caused companies to follow government regulations.
Besides that, Forbes also has other reasons related to the difficulty of Chinese companies entering the American stock market. Coupled with President Joe Biden who will make regulations that may be different from the policies of previous presidents.
Analyst Bloomberg talk stock betting in 2021
Another view by analysts from Bloomberg, which actually provides some descriptions of stocks that can be bet on, especially in the Asian market, especially China.
Bloomberg provides an example of a stake that is worth betting on, including in the energy sector. The reason is in the field of energy that is needed by production machines and vehicles.
The second Asian stock theme is technology. For example, in the field of games where the internet media provides great opportunities for technology development.
Asian stocks to watch 2021
Despite the debate between analysts, the investor doesn’t have to stop, as far as he can control himself it is an amazing thing.
Here are some Asian stocks 2021 watchlist.
Xpeng is a company from China that is engaged in electric vehicles, under the name Xiaopeng Motors. Currently, there are two vehicles produced. Those are the P7 and G3. All of which are autonomous vehicles.
Pinduoduo is a Chinese e-commerce company listed on the US stock exchange. Although not very well known outside of China, Pinduoduo is one of the big players in China’s e-commerce ranks besides Alibaba and JD.com. Pinduoduo’s success is motivated by an online shopping model that is different from other e-commerce sites. Through Pinduoduo, consumers can do social shopping, aka shopping together with relatives through a grocery link sent through a shopping group.
TSMC is a Taiwan semiconductor manufacturing head office located in Taiwan. It is a company that shares the list on the Taiwan Stock Exchange and NYSC with the ticker symbol TSM.
JD Health International Inc
JD Health International Inc, a technology-based pharmaceutical and healthcare business unit owned by JD.Com, officially took the floor on the Hong Kong stock exchange where on the first day of trading, JD Health’s share price skyrocketed 46.5% of the offering price.
The company has a valuation of US $ 29 billion before listing. With this price increase, JD Health is now worth almost US $ 39 billion.
Melco Resorts & Entertainment
This company which is engaged in the entertainment and casino sector is one of the companies on the watch list because it has the potential for significant gain as the company’s network expands.
Best Asian stocks to invest in 2021
The watchlist above is a company that currently has a large valuation, for example, Xpeng, from year to year, it has always raised funds until 2020 it has reached $ 1.5 billion through IPO on NYSC.
The cars produced are very impressive with designs similar to those of Tesla motors. This is an interesting stock to buy in 2021.
While Pinduoduo was found by Cholin Huang. In a report in 2020. He was a young man to become the richest person in China with a total wealth of 44 billion US dollars. Meanwhile, Jack Ma, who resigned from the CEO of Alibaba and focuses on philanthropic activities, has 43 billion US dollars.
Pinduoduo’s stock rose 300% last year, so this is also one of the stock options to buy in 2020.
TSMC, which is a semiconductor manufacturer based in Taiwan, is also a great option to buy, as increasing demand indicates that the company is performing well.
Why are Asian stocks down today?
In most Asian stocks this time fell as Japan’s Nikkei 225 fell by 0.7%, South Korea’s KOSPI fell 0.8% and Hong Kong’s Hang Seng index fell around 0.3%.
Asian stocks fell mostly due to oil fluctuations and a result of the spread of the coronavirus.
The pandemic has a huge impact on the performance of large companies in the Asian region, so the spread of coronavirus has a major impact on the work patterns of companies.
However, it is expect that the development of the vaccine will be able to normalize the situation so that the company’s activities will return to normal.
Why china stocks are falling?
China stocks fell more due to panic selling that occurred in the Asian region, and China’s economic slowdown.
Another reason is the high trading margin, China allows investors to use margin trading up to 7x which is very vulnerable to the situation for investors because there is no security protection.
High-margin trading can trigger a bubble, but at that point, it will explode, and that’s one of the reasons why Chinese stocks fell.
Why are Japanese stocks falling?
Historical data on the fall in Japanese stocks is by various factors. Like a small increase in GDP was only 1.14% in the period 1991 – 2003. Then subsequent GDP growth actually decreases by only 1%. This condition is the reason for falling Japanese stocks.
Furthermore, the earthquake and tsunami disasters are also the reason for the fall in Japanese stocks.
The global recession that occurred in 2008 affected the Japanese stock crash, and the Covid19 pandemic also affected Japanese stocks.
Asia is a continent that contributes a portion of its contribution to financial markets. Stocks in the Asian stocks 2021 region are attractive enough to be on the watch list of investors.
However, it must also need to realize that not all stocks will have a good performance. Sometimes it will fall, but eventually, it will rise again and repeat its history.
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