While the U.S. struggled with near-10% unemployment, China grew at that same pace over the past year. But the country faces massive internal problems that leave it in a far more difficult situation than the praise constantly heaped on it implies.
There's no end in sight to the tension between North and South Korea that recently rattled world markets. But Kim Jong-Il may have finally pushed his patrons in Beijing and his neighbors to the south too far. Could real change be coming to the Korean Peninsula?
Given all that transpired globally over the Thanksgiving weekend, the idea of holding risky assets like stocks should give investors heartburn. Perhaps a strong Black Friday weekend and holiday selling season will draw traders' gazes, but that's no sure shot.
North Korea's unprovoked artillery attack this week on the sparsely populated South Korean island of Yeonpyeong put a scare into the international community. What's even more frightening is contemplating the despotic regime's next step.
Asian markets were mixed Wednesday. In China the Shanghai Composite Index rose 1.1% to 2,860 and in Hong Kong the Hang Seng Index advanced 0.6% to 23,024. Japan's Nikkei 225 Index sank 0.8% to close at 10,030.
Stocks fell sharply Tuesday as investors fled riskier assets following an exchange of artillery fire between North and South Korea. Better news on U.S. economic growth was no match for the new worries, on top of Euro-jitters.
A China expert explains that overtaking Japan doesn't alter the underlying economic issues China must resolve, but it does cement changes that have been rapidly making China a far more important player on the global stage.
