Asia-Pacific stock markets rallied on Tuesday, recovering from a global sell-off that shook investors on Monday. The unexpected surge was largely attributed to the rapid appreciation of the Japanese yen, a crucial currency in carry trade strategies, which has introduced significant market volatility.
Hong Hao, chief economist of GROW Investment Group, shared his insights with CGTN, explaining that the movement of capital towards Chinese markets comes as no surprise. \\"Investing in Asian companies that demonstrate strong earning potential but are currently undervalued serves as a defensive strategy in these uncertain times,\\" Hao stated.
He emphasized that with the ongoing fluctuations, reallocating funds to stable and promising markets like China's can help mitigate risks and capitalize on growth opportunities within the region.
Reference(s):
Capital reallocated toward Chinese market 'unsurprising': Economist
cgtn.com
