Is This Rally for Real?: Stock markets are jumping, but economic revival is still far off

After more than a year of grim news, the mood in Asia's equity trading pits is finally improving. Buoyed by falling interest rates, Asia's most devastated market, Jakarta, is up a handsome 58% in US dollar terms since early October, while Seoul is up 40%. But the recent gains may not signa...

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Bibliographic Details
Published in:Bloomberg businessweek (Online) 1998-11 (3604), p.66
Main Author: Sheri Prasso in Hong Kong, with Mark L. Clifford in Hong Kong, Brian Bremner in Tokyo, and bureau reports
Format: Magazinearticle
Language:English
Subjects:
Economic recovery
Manycountries
Rates of return
Securities markets
Securities trading volume
Stock prices
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Summary:After more than a year of grim news, the mood in Asia's equity trading pits is finally improving. Buoyed by falling interest rates, Asia's most devastated market, Jakarta, is up a handsome 58% in US dollar terms since early October, while Seoul is up 40%. But the recent gains may not signal an Asian economic recovery. Many pros are unwilling to concede that this is anything more than a classic bear market rally. Indeed, just about every Asian economy is expected to contract this year and next. The cumulative effect, experts predict, is that Asia's stock markets will continue to bounce along the bottom for at least the next year.
ISSN:0007-7135
2162-657X