The first quarter has been a mixed bag for Asia’s major markets, with last year’s star performer turning into this year’s laggard in a sharp reversal of fortune.
Japan’s benchmark Nikkei 225 is the region’s worst-performing market, down over 10 percent year-to-date following stellar gains of 57 percent in 2013, on growing concerns the government may not to deliver on its promise to put the economy on a sustainable growth path.
Foreign investors sold a net 1.84 trillion yen ($18.1 billion) of Japanese stocks in the year to mid-March, reversing from 2013 when they bought a record 15.1 trillion yen, according to Reuters.
Meanwhile, Indonesian equities, which were among the hardest hit amid the turmoil in emerging markets last year, made a solid comeback, emerging as the region’s top performing market this year.
The Jakarta Composite is up 10.8 percent year-to-date – after declining 1 percent last year – boosted by a combination of factors including an improvement in the country’s huge trade deficit, a string of upgrades in corporate earnings forecasts and upcoming presidential elections in July.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.