Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Time to take the RED Pill - 28th May 24
US Economy Slowing Slipping into Recession, But Not There Yet - 28th May 24
Gold vs. Silver – Very Important Medium-term Signal - 28th May 24
Is Gold Price Heading to $2,275 - 2,280? - 28th May 24
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

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

© 2005-2022 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