Political risk continued to influence events in the Far East, with the implications of China’s ‘’common prosperity’’ policy continuing to be mulled over by investors. Balancing the needs of communist social policies with the demands of Western capital is an issue that will take time to work through and although regional stock markets recovered some of the ground lost in July, the longer run investment implications remain unclear. Late in the month, prospects of a snap election in Japan sparked a strong rally in Japanese stocks, which had been quiet of late.
“Balancing the needs of communist social policies with the demands of Western capital is an issue that will take time to work through and although regional stock markets recovered some of the ground lost in July, the longer run investment implications remain unclear.”
