TOKYO -- The Nikkei Asia300 Index has been rising recently. The reason is that investment capital has been flowing into Asian markets from around the world in pursuit of growth and yields. However, money can be capricious. Fear of a risk can quickly send money flowing out of a market. Whether money will continue to flow into Asia depends on three factors -- Asia's growth potential, the movement of the U.S. dollar and U.S. long-term interest rates, and the stability of the market environment.
In 2017, economic growth in Asia, excluding Japan, is estimated at 6.4%, compared with 2% for developed countries and 3.5% for the entire world, according to the International Monetary Fund. Capital accumulated in Asia through active trade within the region as well as with developed countries has supported growth in domestic demand, leading to high economic growth and inflation.