KUALA LUMPUR (Sept 30): The Edge weekly in its latest cover story reported that on Sept 15, residents of Japan’s northernmost major island Hokkaido woke up to deafening sirens blasting from speakers as a ballistic missile launched by North Korea flew over the Japanese airspace.

The magazine said the missile landed 2,000km to the east of Hokkaido in the Pacific Ocean. It was the latest in a series of provocations between the hermit kingdom and the US, following calls by the world superpower for greater economic sanctions to be imposed on the regime.

The Edge’s Kamarul Azhar wrote that while major stock markets in Asia fell during the day, they resumed their upward trend the next day and week, without any major outflow of foreign funds.

The MSCI Asia Pacific ex Japan added 1.19% between Sept 14 and 22, the weekly said.

The Edge raised the point whether this means geopolitical risks are not a major factor for international investors?

Also, it highlighted that as October — historically a dangerous month for capital markets — dawns, should investors be worried for their investments?

The weekly in its analysis of October said international fund managers see provocations between North Korea and the US as nothing new, and therefore, do not have a heavy bearing on global markets and economy.

Real economic data would be the main drivers of the stock markets, they say, said the magazine.

Quoting a a spokesperson of US-based asset management company Aberdeen Standard Investments, the Edge wrote: “Emerging markets (EM) continue to enjoy a sweet spot of improving growth prospects and favourable external conditions: corporate earnings have been improving amid growing evidence of a synchronised global recovery.

“Meanwhile, a weaker dollar is boosting global cross-border liquidity and helping EM currencies. This is, in turn, putting downward pressure on inflation.”

The magazine also said CIMB Investment Bank Bhd sees stronger interest from foreign investors in Malaysia now compared with early on in the year, citing analysts Ivy Ng Lee Fang and Michelle Chia as saying in a strategy note dated Sept 20.

They found that foreign funds are interested in Malaysia because of the strong economic growth in the first half. Key questions that foreign funds ask are mainly growth numbers, consumer sentiment and timing for the 14th General Elections, according to the Edge. 

For a fuller understanding of what October may hold for investors and the local equity market, get your copy of the Edge for the week of Oct 2 – Oct 8 available at newsstands now or save by subscribing to us for your print and/or digital copy.

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Save by subscribing to us for your print and/or digital copy.

P/S: The Edge is also available on Apple's AppStore and Androids' Google Play.