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Asian-Pacific Stocks: What's Hot, What's Not

Our regional expert tells you what markets deserve your attention

by Alexandra Lienhard
Updated: December 01, 2016

Mark Galasiewski, the editor of our Asian-Pacific Financial Forecast and contributor to our Global Market Perspective, reveals what markets you should keep your eye on heading into the new year.

Alexandra Lienhard: I'm Alexandra Lienhard, and today on ElliottWaveTV, I have Mark Galasiewski joining me. Mark is the editor of Elliott Wave International's Asian-Pacific Financial Forecast and a contributor to the Asian-Pacific section of the monthly Global Market Perspective. Hi Mark, good to see you again.

Mark Galasiewski: Hi Alex, good to see you too.

Alexandra: So now that Donald Trump has won the U.S. presidential election, looking back at his campaign, he was frequently critical of China. So, I'm curious what effect, if any, have the election results had on the Asian-Pacific region, and China specifically?

Mark: Well, in the markets they've had no particular effect, as you say. The markets have been trending higher before the election, and they continue trending higher after the election, so no change there. But, politically, yes, of course there are effects to news announcements. And in this case, for example, President Xi Jinping of China has taken Trump's victory as an opportunity to try and claim the mantle of champion of free trade in the Asia-Pacific by promoting his own projects regarding trade blocks, for example, with Southeast Asia.

I go into more about that in the December issue [of The Asian-Pacific Financial Forecast], but it's an interesting observation in itself, and it says a lot about the mood in Asia, or the Asia-Pacific, compared to the developed markets of the world.

Alexandra: And in looking back at your analysis, you've correctly maintained a bullish stance on much of Asia and even Asian emerging markets. So, as we look ahead towards the next year, towards 2017, are there any markets you're keeping your eye on?

Mark: Right, we've been on top Taiwan and India. Those markets have had some corrections in recent weeks. But they're relative strength leaders, along with Hong Kong, I think they're going to continue to outperform. That's what the Elliott wave patterns are indicating.

Relative strength is a strategy that I personally like. I enjoy watching relative strength leaders, but sometimes when you've had a sideways correction for a very long time (like Singapore has experienced) that can also offer an opportunity when you catch the end of that sideways consolidation. I think that's what's going to be happening, what has already happened, in Singapore. So that may be one for people to watch, as well. It's been under-performing, but sometimes the under-performers have to catch up.

Alexandra: And, Mark, as you're putting the finishing touches on your latest, December issue, what are you excited about the most?

Mark: Well, we've got a low happening in many emerging markets. It's likely the end of a correction, and this is a great time to be looking at individual stocks. So, I've identified some individual stocks that are showing clear long-term wave patterns for our subscribers, and I encourage you to check them out.

Alexandra: Thanks for talking today, Mark. I appreciate it.

Mark: Ok, Alex.