By James McKee
Despite tightening regulations and debt issuances in China the Asian stock market is rallying. Japan has not helped the situation any either given that their production continues to suffer from a lack of production. The stabilization of the nuclear catastrophe in Japan will have some positive outcomes in the months ahead, however they will take time to develop. Japan is the world’s second largest economy and its downfall has a negative impact upon the Asian stock market to no end. China has begun to create a symbiotic relationship with Japan in an effort to secure more imports for its growing economy, time will tell whether or not the relationship will continue.
The JPY will see some false gains on the online forex exchange as the world waits to see whether or not Japan can recover from their disaster in a timely fashion. There are still tens of thousands of Japanese citizens who are misplaced, without homes or any sort of support system. It stands to reason that Japan will have to address its infrastructure and housing issues before there will be any more progress. The Japanese government has promised to aid displaced citizens; however, at the moment they are living in gymnasiums and outdoor tents.
China is on track to be the world’s next superpower and have begun to seek out influence not only in Asia, but Europe and Africa as well. The far reaching implications of the Asian market might not be too clear as of yet, however in some time there could be serious consequences. Japan produces many of the rare minerals necessary to produce electronic devices such as iPads and other devices. A shortage of these devices could have an adverse impact on the US economy and the USD on the online forex exchange. Keep an eye on China’s and Japan’s policies in the near future.
About the Author
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the online forex trading regularly.
