“A 30-stock index is not necessarily ideal as a benchmark for asset managers but it does lend itself well to investible products such as ETFs, for which there is a lot of demand from mutual funds and other investors,” said John Prestbo, editor and executive director of Dow Jones Indexes. “We see the index as a shorthand expression of the regional market.”Seven of the component stocks on the Asia Dow are based in Japan, the most of any nation in the index followed by Australia, China and Hong Kong with four each.Toyota Motor Corp (7203.T), and the Hong Kong listings of Industrial & Commercial Bank of China Ltd (1398.HK) and HSBC Holdings Plc (0005.HK) are some of the large Asian blue-chips included in the Asian index.The Asia Dow takes a slightly different approach from others in that Japan and Australia are also included in a Pan-Asian index.Traditionally, the regional investment landscape has been split into Japan and Asia excluding Japan, partly because of the developed nature and larger size and depth of the Japanese equity market compared with the rest of Asia.”We are sensitive to Japan’s size, but I think there is a countervailing trend here of looking at the region as a single equity market which would include Japan,” said Prestbo.Southeast Asia also finds representation in the Asia Dow with one company each from Indonesia, Malaysia and Singapore, namely Astra International (ASII.JK), CIMB Group Holdings Bhd (CIMB.KL) and Jardine Matheson Holdings Ltd (JARD.SI).
@7 months ago with 49 notes
#Dow #Jones #Indexes #launches #indexes #for #Asia #Europe
* Lobby calls for more capital for region’s banksBRUSSELS, Oct 14 (Reuters) - The head of one of Europe’s
biggest business lobby groups has warned of the risk of fallout
from losses on Greek debt, while urging EU leaders to end
indecision and deliver a comprehensive response to the crisis
when they meet later this month.”We are talking more and more about a voluntary haircut,”
said Juergen Thumann, president of BusinessEurope, commenting on
losses that owners of Greek bonds are set to shoulder.”We have to be extremely careful that we don’t start a
domino effect… that when we start with the first country
others are following,” he told journalists.Thumann said EU leaders had a “historical” opportunity when
they meet on Oct. 23 to deliver their answer to a crisis caused
by runaway bank lending and heavy government debts, but
cautioned them to deal carefully with any Greek default.”We know there is a danger and a high risk,” said the German
businessman. “We are walking on very thin ice when it comes to
the banking system. We have to make sure that we hold everything
together and under control.”Thumann’s remarks underline the nervousness in industry
ahead of the EU summit, which could decide to push for heavier
losses on owners of Greek bonds than those agreed earlier, as
well as outline a plan to strengthen banks.”They have done too little, too late,” Thumann said,
reflecting disappointment with what many see as Europe’s
sluggish response to the crisis. “Hopefully, this time it will
not be too little, too late.”BusinessEurope has sent a letter to the leaders outlining
the concerns of business and calling for support for the
region’s banks.”Firstly, and above all, safeguarding the euro is an
absolute must. EU leaders can make an immediate difference by
committing to support efforts to recapitalise banks,” Thumann
said in the letter.At the news conference he added: “We need a solid banking
system for the real economy.”BusinessEurope, which includes groups such as the
Confederation of British Industry, is one of the EU’s “social
partners” and represents industry in meetings with the European
Union executive held before EU summits.
@7 months ago with 40 notes
#Business #lobby #group #warns #EU #leaders #on #Greek #debt
