The Asian stock markets have been going down sharply in the last few weeks primarily due to the flow of negative news from all parts of the world. First China is showing signs of cooling off, and that means drop in export demand for many of the Asian countries.
Next is the report of weak US economic growth coupled with the weak status of the European countries. All these factors have forced the Asian markets to slide, and the moot question now is whether the slide will continue or the good times will return ?
There are enough reasons for us to believe that the Asian markets would reverse the losses and get back to decent profits in the months ahead. First China would be relaxing the lending rules anytime soon, and Japan also would be seeing a decent prop up to the economy due to the special measures by the Japan Central bank.
Even in Europe, the three major countries UK, France and Germany are in good health and are show
Add to this the dominance of domestic demand for most of the Asian countries, which are in healthy shape. So expect better times for the Asian economies in the days to come.