Stock Market Investor's Paradise in Southeast Asia?

Led by China, India, and Japan, the emerging Asia-Pacific economies have pulled the world out of the severe financial crisis of 2008 and put it back on the growth track. Home to the world's largest emerging markets, manufacturing export economies such as South Korea and Taiwan, as well as resource and technology exporters such as Indonesia and Singapore, Asia is one of the major players in the global economy.

Emerging Asia

In the past decade, the evolution of Asian economy has substantially increased the attention of large Multinational Corporations (MNCs). Many investors are attracted to world's less-developed countries, because they see the tremendous profit possibilities that could come from making countries better off. The potential growth in emerging economies is exciting. Unsaturated consumer markets, coupled with cheap labor and fast growing population that provides an unlimited workforce, have helped make Asian countries desirable markets for global firms. Other important dimensions of the Asia-Pacific region are the reasonable political stability, the low interest rates, export-driven economies, the emphasis on high-speed technology, and the efficient and business-friendly environment. Undoubtedly, diversifying your portfolio by adding emerging market securities, will eventually boost you expected return and reduce your investment risk.

Alighting in Southeast Asia

Besides the emerging market giants: China, India, and Japan, there are four other widely recognized economic powers in Asia: Singapore, Taiwan, South Korea, and Indonesia. Singapore is a major growth story. Singapore has emerged as the leader and financial centre of Southeast Asia. The country not only hosts the world's busiest port, but also is the land of multicultural and highly educated labor force. Besides Singapore, Taiwan has progressed form labor-intensive economy to technologically sophisticated one. The transitional economy resulted in advancements in banking sector, electricity generation, petroleum refining, and computer technology business. In South Korea, the major conglomerates include internationally known firms like Samsung, Daewoo, Hyundai, and LG Group. South Korea has demonstrated a solid and highly diversified economy with moderate growth, low unemployment rate and positive trade balance, and favorable investment climate. The 17,000 islands of Indonesia, along with the young and literate 240 million population form a potential powerhouse. Indonesia has developed economically with abundant workforce and inexpensive labor despite the lack of considerable natural resources. Indonesia is considered as one of the world's fastest growing countries with current investment growth rate of 13%. Recently, the country's investment environment has attracted one of the largest global telecommunication and service companies- AT&T, which will positively impact country's economic position.

Despite the much better developed and well-structured India, China, and Japan, these export-driven Southeast Asian countries are quite attractive to investors. MNCs from around the world all want to have a strong presence in these emerging economies. For additional information on this and related topics, check out Yiannis Mostrous's free report on Best Asian Stocks to Buy Now.