Prospects for Asian Securities Markets
Though Asian markets weathered the global financial crisis well, equity markets remain small and vulnerable to foreign capital inflows and outflows, which makes the continuing development of a bond market essential according to Koichiro Miyahara, senior executive officer at the Tokyo Stock Exchange Group.
Recently, the conditions surrounding Asia have been evolving, particularly in the areas of economics and finance.
First, allow me to outline economic trends which are changing on a global scale. Along with the economic development occurring in China and India since 1990, the Asian economy has achieved rapid growth.
Though it has experienced periods of temporary stagnation due to the Asian currency crisis in the late 90's and the financial crisis which arose from the US in 2008, Asia has enjoyed V-shaped recovery.
Additionally, despite a slight slowing of growth due to the effects of events such as European financial issues and monetary tightening in developing countries, growth has been steadily expanding thanks to increased trade in goods related to expanded consumption.
For example, according to IMF estimates from 2010 to 2012, China's GDP will progress from 10.3 per cent to 9.6 per cent to 9.5 per cent, while India's will move from 10.4 per cent to 8.2 per cent to 7.8 per cent, with continued high growth expected.