Asia Pacific Journal of Management

, Volume 7, Issue 2, pp 153–163 | Cite as

Portfolio diversification into the Asia-Pacific capital markets: A currency perspective

  • Dennis S. Chan
  • Rupert K. Leung
Articles

Abstract

This paper examines the potential benefits of international investment in the Asia-Pacific capital markets. Using the viewpoints of U.S., Hong Kong and Japanese investors, the study shows that the returns from international investment within the region are more dependent upon the state of exchange rate changes. For the Hong Kong investors, despite the adopted pegged-rate between the Hong Kong dollar and U.S. dollar, the pattern of exchange returns from investing in the region resembles that of Japan rather than that of the U.S.

Keywords

Japan Exchange Rate Potential Benefit Rate Change Capital Market 

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Copyright information

© School of Management National University of Singapore 1990

Authors and Affiliations

  • Dennis S. Chan
    • 1
  • Rupert K. Leung
    • 2
  1. 1.the Department of Accountancy at Hong Kong PolytechnicChina
  2. 2.the Division of Business and Hotel Management at Gold Coast University College of Griffith UniversityUSA

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