Best of the Week
Most Popular
1. Climate Change Mass Extinction - Birds, Bees and Bugs: Going Going Gone - Richard_Mills
2.A Purrrfect Gold Price Setup! - Peter_Degraaf
3.Who Finances America's Borrowing? Recession Indicator for Independent Thinkers Part 2 - F_F_Wiley
4.America’s One-sided Domestic Financial War - Raymond_Matison
5.Gold Price Summer Doldrums - Zeal_LLC
6.Two Key Events Will Unleash Gold - Jim_Willie_CB
7.Billionaire Schools Teacher in NAFTA Trade Talks - Richard_Mills
8.Get Out Of Crypto Cannabis Bubble Before It Pops and Move Into Bargain Basement Miners - Jeb_Handwerger
9.Stock Market Could Pullback for 1-2 weeks, But Medium Term Bullish - Troy_Bombardia
10.G7 Chaos, Central Banks and US Fed Will Drive Stock Prices This Week - Chris_Vermeulen
Last 7 days
How Crazy It Is to Short Gold with RSI Close to 30 - 16th Jul 18
Markets Pay Attention Moment - China’s Bubble Economy Ripe for Bursting - 16th Jul 18
Stock Market Uptrend Continues, But... - 16th Jul 18
Emerging Markets Could Be Starting A Relief Rally - 16th Jul 18
(Only) a Near-term Stock Market Top? - 16th Jul 18
Trump Fee-Fi-Foe-Fum Declares European Union America's Enemy! - 16th Jul 18
US Stocks Set For Further Advances As Q2 Earnings Start - 15th Jul 18
Stock Market vs. Gold, Long-term Treasury Yields, 10yr-2yr Yield Curve 3 Amigo's Update - 15th Jul 18
China vs the US - The Road to War - 14th Jul 18
Uncle Sam’s Debt-Money System Is Immoral, Tantamount to Theft - 14th Jul 18
Staying in a Caravan - UK Summer Holidays 2018 - Cayton Bay Hoseasons Holiday Park - 14th Jul 18
Gold Stocks Summer Lows - 14th Jul 18
Trump US Trade War With China, Europe Consequences, Implications and Forecasts - 13th Jul 18
Gold Standard Requirements & Currency Crisis - 13th Jul 18
Focus on the Greenback, Will USD Fall Below Euro 1.6? - 13th Jul 18
Stock Market Outlook 2018 - Bullish or Bearish - 13th Jul 18
Rising Inflation is Not Bearish for Stocks - 13th Jul 18
Bitcoin Picture Less Than Pretty - 13th Jul 18
How International Observers Undervalue the Chinese Bond Market - 13th Jul 18
Stocks Trying to Break Higher Again, Will They? - 12th Jul 18
The Rise and Fall of Global Trade – Redux - 12th Jul 18
Corporate Earnings Q2 2018 Will Probably be Strong. What This Means for Stocks - 12th Jul 18
Is the Relative Strength in Gold Miners to Gold Price Significant? - 12th Jul 18
Live Cattle Commodity Trading Analysis - 12th Jul 18
Gold’s & Silver’s Reversals’ Reversal - 12th Jul 18
The Value of Bitcoin - 11th Jul 18
America a Nation Built on Lies - 11th Jul 18
China, Asia and Emerging Markets Could Result In Chaos - 11th Jul 18
Bullish Gold Markets in the Big Picture? - 11th Jul 18
A Public Bank for Los Angeles? City Council Puts It to the Voters - 11th Jul 18
Yield Curve Inversion a Remarkably Accurate Warning Indicator For Economic & Market Peril - 11th Jul 18
Argentina Should Scrap the Peso and Dollarize - 11th Jul 18
Can the Stock Market Close Higher For a Record 10th Year in a Row? - 11th Jul 18
Why Life Insurance Is A Must In Financial Planning - 9th Jul 18
Crude Oil Possibly Setting Up For A Big Downside Move - 9th Jul 18
BREAKING: New Tech Just Unlocked A Trillion Barrels Of Oil - 9th Jul 18
How Trade Wars Penalize Asian Currencies - 9th Jul 18
Another Stock Market Drop Next Week? - 9th Jul 18
Are the Stock Market Bulls Starting to Run? - 9th Jul 18

Market Oracle FREE Newsletter

5 "Tells" that the Stock Markets Are About to Reverse

Where China and Japan Are Investing Billions

Stock-Markets / Investing 2014 Sep 22, 2014 - 03:45 PM GMT

By: Investment_U

Stock-Markets

Sean Brodrick writes: Japan and China are the two biggest economic powerhouses in Asia. When their wallets open up, the world takes notice.

Now, both countries are directing a lot of investment money... into India.

Japan is leading the way. Last year, it invested $1.2 billion in India - primarily targeting infrastructure. This year, it spent $1.1 billion in India between January and April alone.


While in Japan, India's new prime minister, Narendra Modi, received a pledge from Japan's Shinzo Abe of $35 billion in new private- and public-sector investment over five years.

Specifically, Japan will put its money toward next-generation infrastructure projects, smart cities, bullet trains and more.

It's easy to see why.

India has 1.24 billion people with an average age of 27. That's a customer base that Japan would love to have.

And Modi is business-friendly. That makes the decision to upgrade the relationship between Japan and India to a "special strategic global partnership" an easy one.

Modi has a vision for 100 smart cities in India, modeled after Kyoto, Japan. In addition to the usual infrastructure, a smart city also has top-notch communications, high-tech knowledge and social infrastructure.

Tokyo and Delhi also finalized an agreement on rare earths. Japan will import rare earths, which are rare elements used in many products, from India to diversify supply away from China.

Enter China

And speaking of China...

China has a massive feud going on with Japan, rooted in hundreds of years of conflict. Now, China's attitude seems to be: "Anything Japan can do, we can do better."

After all, China has $3.95 trillion in foreign exchange reserves burning a hole in its pocket. China Investment Corp., the nation's sovereign wealth fund, has $575 billion in assets. It would like to invest at least some of that money.

So, in a visit to India this week, China President Xi Jinping is expected make a major announcement: China will commit up to $300 billion toward the modernization of Indian railways.

China will fund...

  • The replacement of existing tracks to increase train speed
  • Station development
  • Other mega infrastructure projects.

China is also asking India to hand over certain railway corridors for it to build bullet trains to compete with Japan's.

One China spokesman said in press reports: "We can invest far bigger amounts than Japan and finish projects in India far cheaper and faster. We have a proven record in this regard."

What's more, during the presidential visit, China should announce that it will build two industrial parks in the western states of Gujarat and Maharastra. These industrial parks will host manufacturing and energy units.

More to Come

India's power demands are growing rapidly and the country is pressing Japan to provide components for nuclear reactors. India plans to build about 30 nuclear reactors.

The two countries are working out the kinks on a deal to allow India to reprocess nuclear fuel and harvest weapons-grade plutonium.

India already has nuclear weapons so it plans to use the plutonium in fast-breeder reactors that are under development.

China has its own nuclear program. So, I would expect it to present its components as an alternative to Japan's. And China has no qualms about what any customer may do with plutonium.

How to Play This Trend

It sure looks like Japan and China are leading the wave of foreign direct investment in India. This should be a big boost for India's stock market.

One way to ride this trend would be to buy the iShares MSCI India ETF (NYSE: INDA).

In the chart you can see that the INDA has strongly outperformed the S&P 500 since the start of the year. That sure looks like a trend I'd like to ride.

Good investing,

Sean

P.S. While a handful of countries enjoy newfound wealth, America's roads, power grid and water systems are crumbling. Congress will have to spend $450 billion per year just to fix the mess. And worldwide infrastructure costs over the next six years will total $57 trillion. Join me on a MoneyShow webinar at 3:30 p.m. on Wednesday to discover how to reap extraordinary profit from a megatrend that could rebuild the world. Just click here.

Source: http://www.investmentu.com/article/detail/40020/india-nyse-inda-where-china-and-japan-are-investing-billions

http://www.investmentu.com

Copyright © 1999 - 2014 by The Oxford Club, L.L.C All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Investment U, Attn: Member Services , 105 West Monument Street, Baltimore, MD 21201 Email: CustomerService@InvestmentU.com

Disclaimer: Investment U Disclaimer: Nothing published by Investment U should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Investment U should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Investment U Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules