Asian Markets

Asian Markets

December 9, 2004

Markets are selling Asian ETF’s today; Korea (EWY), Pacific ex-Japan (EPP), Japan (EWJ) all down. It’s a head fake.

Reaction to soft Q3 growth stories in Japan, failure of Korean central bank to lower rates to restore weakening growth. Also a striking op-ed in the Japan Times today about the string of recent peasant and worker violence in China. Exception is Hong Kong, where real estate is firming. There is reason to worry about China. Our government is leaning on them to revalue the RMB, which would further tighten credit. NOBODY knows how to estimate what would happen. I believe the Japan growth story is very solid. “

John Rutledge

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