It is highly important for professional traders to follow economic trends and keep their finger on the market pulse.
Depending on whether a certain region or a country keeps its development in progress or not, a trader often decides upon his investment activities and strategies.
It is well-known that the Asian financial market has skyrocketed during the past two decades. Unlike the Western World countries that are currently struggling to overcome their shrinking economies, the Asian states seem to feel confident with respect to their future prospects.
As a result, this is all reflected in the region’s financial markets. The common trend is that the companies’ shares, derivatives etc. are steadily growing in their value, which raises the demand for Asian financial instruments in general and indexes in particular.
It is said that in order to maximize the total welfare, demand and supply should reach an equilibrium point. That is why to satisfy our clients’ needs, Exante has added several futures of the major Asian indexes to its platform.
Exante’s clients may now benefit from using H-shares Index, FTSE China A50 Index and Hang Seng Index (HSI) futures, all of which are Chinese market indexes.
H-shares Index is compounded from stocks that are traded on the Hong Kong Stock Exchange (HKEx) and that are available for the foreign investors; whereas, FTSE China A50 Index consists of those stocks that are traded in Shanghai (SSE) and are available for locals only.
SSE is under Chinese tight control, while HKEx is open to the rest of the World. Due to the significant differences in trading conditions for A- and H-class shares, Shanghai shares are traded with a premium of around 80% over the Hong-Kong ones.
The Hang Seng Index is a free-float capitalization-weighted index of a selection of companies from the Stock Exchange of Hong Kong. The index was developed with a base level of 100 as of July 31, 1964.
Apart from Chinese index futures, Exante also gives access to the index futures of other large Asian markets. To cover the Japanese market, Exante has added futures on Nikkei 225 Index (NKY).
It is a price-weighted average of 225 top-rated Japanese companies listed on Tokyo Stock Exchange (TSE). The index is the second largest Asian index in terms of value traded.
Furthermore, it is not possible not to mention India when discussing the Asian financial word. CNX Nifty Index (NIFTY) is the leading index for large companies on the National Stock Exchange of India (NSE). It consists of 50 companies representing 24 sectors of theeconomy.
The index had a basis of 1000 when it was created in 1995. By 2005, it hasbeen almost doubled. AndnowExante's clients may enjoy trading futures on this index as well.
Finally, Exante has also added the index futures of Singapore, a country that is known as the Asian tiger and that has one of the most developed financial systems in the world.
MSCI Singapore Free (SiMSCI) Index is a free-float adjusted market capitalization weighted index. It tracks the equity market performance of Singapore securities listed on Singapore Stock Exchange (SGX).