Far East Stock Exchange
Investors targeting above-average returns in 2024 should allocate 15–20% of their portfolios to Far East markets. The Tokyo Stock Exchange’s Prime Market Index rose 28% year-to-date, driven by corporate governance reforms boosting shareholder payouts. South Korea’s KOSPI outperformed regional peers with a 19% surge in tech-heavy sectors, while the Hang Seng Index remains undervalued at a P/E ratio of 9.3 compared to its 10-year average of 12.1.
Sector-specific opportunities dominate: semiconductor equities in Taiwan (TSMC’s Q2 revenue climbed 23% YoY) and renewable energy infrastructure stocks in mainland China (solar installations grew 154% in 2023). Japan’s real estate investment trusts (REITs) yield 4.1%, outpacing 10-year government bonds by 270 basis points. Short-term traders should monitor Singapore’s SGX for leveraged exposure to ASEAN growth, with derivatives volume up 31% this quarter.
Currency risks require active management. The yen’s 14% depreciation against the USD since 2022 complicates Japanese equity returns for foreign investors. Hedging costs for CNY-denominated assets have risen to 2.8% annually, but structural demand for offshore yuan bonds persists, with issuance volumes hitting $72 billion in H1 2024.
Regulatory shifts in Hong Kong, including waived stamp duties for small-cap trades, signal liquidity incentives. South Korea’s delayed short-selling ban extension to 2025 adds volatility to high-beta stocks like NAVER and Kakao. Use limit orders to capitalize on intraday price swings exceeding 5% in Shanghai’s STAR Market, where 68% of listed firms doubled R&D spend in 2023.
