Japanese and Chinese stocks are leading Asian stocks higher for the fourth year in a row. Spread betting and contracts for differences on Asian stocks could be profitable as the year ends, and as we move into 2007. Bloomberg reports:
Asian stocks rose for a fourth year, the longest winning streak in almost two decades, and may increase in 2007 as consumer spending picks up in Japan and China, the region's two biggest economies.
Stock benchmarks in China, Hong Kong, India and Indonesia set new highs in December, helping push MSCI Asia-Pacific Index excluding Japan up 29 percent this year. Slowing growth in Japan made the Topix index the worst performing gauge among the world's 10 largest markets. The MSCI index that includes Japan climbed 14 percent through yesterday, behind Europe and the U.S.
JPMorgan Chase & Co. and Goldman Sachs Group Inc. predict Japan will join the rally next year as rising salaries help reverse a slump in household spending. Consumers are spending more in China, where the economy is growing faster than 10 percent and the government is raising minimum wages and welfare payments.
``Both Japan and China doing well is going to drag more money into Asia,'' said Donald Gimbel, who manages $2 billion at Carret & Co. in New York. ``Things are very positive.''
