The relief rally for beaten-down stocks pushed Tokyo and Mumbai to their best weeks for two years but market forecasters remained sceptical over prospects for a sustained upturn given the global headwinds.
Stock exchanges in Singapore, Malaysia and Thailand delayed a plan to set up electronic trading links to attract investment and raise liquidity, saying it would be done in 2012.
The plan, set to be finalised this year, will be joined by exchanges in the Philippines, Indonesia and Vietnam at a later date. The proposal to launch cross-border trading was initially set to be in place in 2010, but has already been delayed for reasons such as the development of a new platform.
The ASEAN Trading Link is aimed to electronically interconnect the participating markets and facilitate cross-border order trading seamlessly.
The seven exchanges of Southeast Asian have a combined capitalisation of about $2.4 trillion and were the darlings of emerging market investors in 2010.
Asian stock markets have tended to outperform developed market equities during good times but underperformed in bad times and next year is unlikely to be any different, We expect the region’s equity markets to fall in 2012 by approximately 5-10 per cent from their current levels or around 20-25 per cent from the peaks they reached in early August before an intensification of the crisis in the eurozone. Feel free to forward this Op Ed and follow our Blog stock market news today
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