by Alexandra Lienhard
Updated: January 26, 2017
Our Asian-Pacific Markets Expert, Mark Galasiewski, sat down with ElliottWaveTV to share new insights into this opportunity-rich region. In this 3-minute video, you'll learn about a divergent pattern that has surfaced between emerging and developed markets, what two markets offer the best opportunities right now and what to anticipate from regional heavy-hitters, China and Japan, in 2017.
[Editor's note: the text version of this interview is below.]
Alexandra Lienhard: Today on ElliottWaveTV I'm talking with Mark Galasiewski, Elliott Wave International's Asian-Pacific Markets Expert and editor of the monthly Asian-Pacific Financial Forecast. Mark also contributes to the monthly Global Market Perspective. Mark, thanks for talking today.
Mark Galasiewski: Thanks for having me, Alex.
Alexandra: Now Mark, you seem to have strong views on emerging markets in general. Not only on direction, but on divergences, as well. Can you talk me through in what you're seeing in EM space?
Mark : Right. The divergences I’m referring to are not within emerging Asian-Pacific markets necessarily, but between emerging markets and developed markets. We've seen, in Asia, developed markets like Japan and Australia have been soaring. Whereas emerging Asian markets have since then come off their highs. So, that divergence is curious and it's a potential risk in the short term, but emerging markets overall are looking much more bullish than developed markets in early 2017.
Alexandra Now, let's switch gears to China. Talk to us about what you're looking at in China in 2017.
Mark: Well, the bottom line is that whatever happens in the intermediate term, China's long term bull market is far from over. There will probably be some gyrations in the near term. But I just want to point out, I think a lot of people watching this video have probably noticed that She Jing Ping, compared to many other global politicians, is looking very statesmen-like at this juncture in history. And this is coming from a country, China, that was nominally communist, has been for many years -- and still is, in many sectors. But to get up there and defend at the Davos Conference, the world economic conference in January, defend the position to champion global trade, he's just looking very professional compared to many of the other global leaders, especially in the developed world.
Alexandra: Now Mark, I want to ask the same question, this time relating to Japan, which has had a strong few years. Are you fading strength in 2017, or trend following?
Mark: Well, again, I was saying earlier that developed markets have had a very good run and the Elliott wave pattern suggests that they will be topping out sometime early in the year -- and that we'll have a correction somewhere in the mid-year. I would say that longer-term, no. The long-term uptrend, as in China, is not done yet, and Japan after the expected mid-year correction, will probably see a good run into 2018.
Alexandra: Now Mark, final question. Short and sweet, what's the best looking market in your space?
Mark: From a nominal perspective, I would say Cambodia and Vietnam are looking the most bullish of all. In fact, I love Vietnam. Bu,t again, you have to deal with the currency, so the currency has been going down for decades in Vietnam, and you have to weight that accordingly when you think about investment in foreign currency, especially U.S. dollar terms.
Alexandra: Mark, thanks for talking today, I appreciate it.
Mark: Sure Alex, until next time.