Asian Australia Economic Relationship

Topics: Inflation, Stock market, Economics Pages: 9 (2520 words) Published: June 10, 2013
1. Introduction

Nowadays, the economic situation around the world has become worse. Some problem such as the increasing of bad loans and the declining of share price may influence the macroeconomic activities for each country. This report will describe the fluctuation of some countries as the examples by using the graphs, thus it will be easier to show how they change in the period to the next period. It contains the share price indexes, real versus nominal, macroeconomic activities, and special about China.

2. Share price indexes
Share price indexes is an index measuring movements in the prices of shares but not their dividends; as opposed to a total return index, which measures both price movements and dividend income. 2.1 Comparison of Australia with USA share price

Actually, the progress of Australia and USA share price was fluctuating. Starting March 1976- March 1996, share price of Australia and USA was increase rapidly. Afterwards, Australia share price was constant. In that period, Australia share price got impact form Asian financial crisis. After the Asian Financial crisis, USA share price was fluctuated where in March 2003, the value of USA share price was dropped to lowest point. Afterwards, the share prices of both countries were increase rapidly until Global Financial crisis in mid 2008. Where, share price from both of country were decrease rapidly.

Figure 2.1

2.2 Comparison of Australia with Japan share price
Japan and Australia are two Asian countries have been affect on the progress of Asian economic. Since March 1976- March 1988, the share prices both of countries were increase rapidly. Afterwards, Japan share price is greater than Australia share price. However, since 1992 the Japanese share price was decrease but Australian share price was increase rapidly to the highest point in March 2007. While, the global financial crisis in mid 2008, the share price both of countries were decrease rapidly.

Figure 2.2

2.3 Comparison of Australia with Korea share price
Starting March 1976, the share price of Australia and Korea was increase rapidly. However in March 1988, Australian share price was constant but the Korea’s share price was fluctuated. Since March 1993, Australia share price was increase rapidly. While the financial crisis in mid 1997, Korea share price was drop to the lowest point since March1988. Afterwards, Korea share price was fluctuated until the beginning of 2007. Since Global financial crisis in mid 2008, the share price both of country was decrease rapidly but it was stable in the $1000.

Figure 2.3

2.4 Comparison of Australia with China share price
Essentially, China is the leader in the Asian Economic. Starting March 1991, the share price of China was fluctuated. However, Australia share price was constant. While, the Asian crisis in 1997, the share price of China was decrease. Afterwards, the China share price was increase rapidly than Australia Share price. While the Global Financial crisis in mid 2008, the share price of China was decrease rapidly than Australia share price.

Figure 2.4

2.5 Comparison annual percentage changes in share price According to the graph, the annual percentage change in share price of Australia, USA, Korea, Japan and China was similarities same. The annual percentage changes between those countries were fluctuating each quarter. While, Asian financial crisis in mid 1997, the share price from those countries was decrease rapidly. It can be look where annual percentage changes in share price are decrease rapidly in that year. Afterwards, annual percentage changes from those countries were fluctuating until Global financial crisis in mid 2008 where it was decrease to the lowest point since March1976.

Figure 2.5

3. Real versus Nominal

3.1 USA Real share price

Figure 3.1

The share price collapse was triggered by the period of oil shocks in 1976s, the recession in 1981s, the...

References: 2003, ‘Crackdown on Korea’, Business week, Available:
http://www.businessweek.com/magazine/content/03_20/b3833008_mz047.htm (viewed 9 May 2009)
2009,’ China’s weakening economy moves Australia closer to recession’, Chartered
Accountants,Available:http://www.charteredaccountants.com.au/news_releases_2009/march_2009/A1 22597481 ( 10 May viewed 2009)
‘Australia economy’, Economy watch, Available:
http://www.economywatch.com/world_economy/australia/ (viewed 10 May 2009)
Cook, R. 2007, ‘it’s official: the crash of the U.S. economy has begun ’, Available:
http://www.globalresearch.ca/index.php?context=va&aid=5964 (viewed 13 May 2009)
Greber J, 2008, “Australia 's Economy Faces First Recession since 1990 (Update1)”,
Bloomberg, Sydney, Australia.
Hua, X. 2009, ‘Slowing China 's growth to impact Australia 's economy: economist’, China
Daily,Available:http://www.chinadaily.com.cn/bizchina/2008-10/24/content_7139708.htm (12 May viewed 2009)
‘Japan economy’, Economy watch, Available:
http://www.economywatch.com/world_economy/japan/ (viewed 10 May 2009)
Kerin, P. 2008, ‘Don’t blame interest rate’, The Australian, available:
http://www.theaustralian.news.com.au/story/0,25197,23198370-23850,00.html (viewed 12 May 2009)
Lee,H.H. 1999, ‘Korea’s 1997 Financial Crisis : Causes, Consequences and Prospects’, vol 6,
pp
Skousen,M. 2006, ‘Inflation’s effect on stock market’, Investment U, available :
http://www.investmentu.com/IUEL/2006/20060206.html (viewed 8 May 2009)
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Economics Essay
  • business economics Essay
  • Essay about Economic
  • Economics Essay
  • The Relationship between business and the economic environment Essay
  • Essay about asian economics
  • Australia Essay
  • Economic growth Essay

Become a StudyMode Member

Sign Up - It's Free