Can Asian Stocks Extend their Current Bullish Trend?

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Can Asian Stocks Extend their Current Bullish Trend
Can Asian Stocks Extend their Current Bullish Trend

There has been an impressive rally when it has come to Asian stocks in the past few trading days. Traders have become much more confident in recent days, as data in the region has improved. In addition, many companies in Japan and China have posted figures that came out even better than was expected.

The Nikkei is one of the biggest gainers this morning, as the economic stimulus is starting to show its effects. The Bank of Japan has been adamant at improving both the Japanese economy and the economies in the Far East. As a result, they have gone ahead with very aggressive stimulus measures.

Traders have become very confident as the global economy has gone from strength to strength. Economies across the global such as the U.K. have improved, which has given investors more risk appetite when it has come to leading Asian stocks and indices.

It is vital to understand that the upward pressure we are seeing as of now was not the case a few weeks ago. It seems that the policies adopted by central banks in the Far East are having a positive outcome. With the yen weakening, this has made Japanese exports more competitive.

Some investors are starting to worry, as there is a feeling that the gains for Asian equities are overdone. Moreover, the slowing Chinese economy is on traders’ minds. As long as the U.S. and Asia continues to release much positive data, traders may be encouraged to buy into Asian stocks.