Asian markets and subsequent exchange traded funds (ETFs) are on the rebound, but recent global data only indicates stabilization, not a total recovery.
The Tankan survey of big manufactures in Japan came in at -48, up from a -58 registered three months earlier, reports Bettina Wassener for The New York Times. The negative reading still shows ubiquitous pessimism among manufacturers. Japanese companies could remain cautious in the short-term, and increase layoffs and other cost savings.
The official purchasing managers’ index (PMI) of China climbed for the fourth month in a row in June, which shows a Chinese economy expanding rather than contracting. The rises were largely aided by stimulus spending in China.
South Korea calculated that exports in June were down 11.3% year-over-year, a small silver lining compared to the 28.5% drop in May.
Many Asian economies benefited from the massive and quick stimulus measures, which helped them mitigate what could have been a long and difficult downturn.
- BLDRs Asia 50 ADR Index (ADRA): up 15.1% year-to-date
- iShares S&P Asia 50 Index (AIA): up 31% year-to-date
For more information on Asia, visit our Asia category.
Max Chen contributed to this article.
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.