The markets hate uncertainty, the North Korean leadership, changes in investment in Asia is obviously unfavorable.
"The market aversion to uncertainty, and the death of Kim Jong Il for the already unstable global economic uncertainty. "Asia's leading trading technology and financial service providers for TORA chief investment officer Duke (KeithDucker,) said that the changes in the North Korean leadership is obviously unfavorable for investment in Asia. Into the first quarter of this particular period, and investors are assessed on the areas which overweight or underweight.
According to Dow Jones Newswires survey shows that the market turmoil in November, the Asian fund manager turned to investing in high-yield fixed-income assets to seek safe-haven. The survey shows that compared with the "neutral" standards in October, November, investors on the global bonds "slightly overweight", but in cash and stock is still "slightly underweight". Nomura (Nomura,) data show investors they believe is a high-risk assets for sale, closing to the first week of December, mutual funds in Asia excluding Japan is a net outflow of funds totaling $ 14.45 billion, while developed countries in Europe an amount of $ 4.5 billion World pipe network reported that the world's steel pipe network to provide the world's steel pipe network editor , U.S. $ 4.4 billion.
- State Information Center, the Forecast Department of the World Economic Research Research Associate Mo Zhang Nan
Emerging markets as investors take a cautious attitude, the inflow amount of money in Asia has declined, while the death of Kim Jong Il's gift for the weak global economic uncertainty, which will further blow to the inflow of funds in Asia.
According to the latest data of the emerging markets investment fund research firm (, according to EPFR), as investors were disappointed with the speedy resolution of the euro zone debt crisis measures World Steel Pipe News , the global equity funds in the last week (December 12 to 16) a net outflow of $ 9.5 billion, This is the fourth consecutive week of global equity fund net redemptions.
"This is not an unexpected message, succession planning has been published for some time. "Olivier said:" I believe the market this event will take a wait-and-see attitude, investors want to see the successor program implemented according to plan, rather than some change.
"Kim Jong Il's sudden death may be, may lead to the Asia-Pacific financial markets on geopolitical concerns of renewed political risk, which to some extent the recent trend of funds from the Asia-Pacific to return to the U.S. will strengthen and further promote the appreciation of the dollar. On the other hand, the future political and economic policies of Korea may face greater uncertainty, this uncertainty will not only exacerbate tensions in Japan and South Korea, it makes the United States have more reason to focus on the Asia-Pacific region.
Risk model for equity investors, the Axioma Eurasian region, Managing Director Olivier (OlivierdAssier) in the next few days, he will be monitoring the Korean stock market reaction to the news of the death on Kim Jong Il, to see whether other areas changes "irrelevant."
EPFR data show that the negative news from Europe, but also for the concerns about China's economic slowdown, Asia (except Japan) Equity Fund is undergoing the biggest round of net outflow of funds. Over the past 19 weeks, 17 of the investors to withdraw funds at the same time, China Equity Fund is also the fourth consecutive week showed a net redemption.