Asian stocks are back in the spotlight after major economies like China witnessed its fastest economic growth in seven years, while Japan registered two straight years of economic expansion. The sentiment surrounding Japan’s economic performance for this year also remains upbeat after manufacturer confidence reached an 11-year high and exports rose for 13 consecutive months.

Moreover, both the World Bank and IMF expected India’s economy to grow higher in the coming years. Additionally, tensions in the Korean peninsula seem to have subdued as South Korea together with its northern counterpart will march at the opening ceremony of the Winter Olympics.

Key indexes of the aforesaid countries have clearly gained momentum in the last one-year period following economic expansion. Strong performance of indexes in the Asia Pacific region bode well for mutual funds with significant exposure to the Asian markets. This is why it makes good sense to invest in Asia Pacific mutual funds.

China and Japan Hold Spotlight

For the first time in seven years, China’s economic growth has moved north rather than south. The world’s second-largest economy expanded 6.9% year over year to around $12.84 trillion, registering the fastest growth in seven years, according to the National Bureau of Statistics (NBS). Robust exports and an uptick in consumer spending were cited to be the reasons for this rapid expansion. (Read More)

In Japan, exports advanced 9.3% in December after registering an increase of 16.2% in November, per the country’s Ministry of Finance. Exports rose for 13 straight months for the first time. Additionally, its manufacturers’ confidence climbed from 27 in December to 35 in January, reaching its best level in 11 years, per a Reuters Tankan poll. Strong rise in exports and robust manufacturer sentiment raised optimism for steady economic growth in the near future.

Inter-Korea Tension Subdues, India Maintains Growth

Both North and South Korea recently had diplomatic talks in the demilitarized zone, where it was decided that athletes from both sides of Korea will march together at the opening ceremony of the Winter Olympics held at Pyeongchang, South Korea. The march will happen under the Korean Unification Flag for the first time since the 2006 Winter Games hosted by Italy. Subdued tensions in Korean Peninsula perked up market sentiment.