How to Profit from Surging Asian Stock Prices

Asian stock market indexes climbed higher on Wednesday on news of better than expected earnings from American companies and renewed optimism that President President Obama and the United States Congress would be able to strike a deal in order to avoid a catastrophic debt default. Both Apple AAPL and The Coca-Cola Company KO reported better than expected earnings on Tuesday, with Apple CEO Steve Jobs referring to the company's fiscal 3rd quarter as Apple's "best quarter ever". The rosy outlook for leading American companies was good news for export-driven Asian economies that count the United States as the region's most important trading partner. News that President President Obama and Congressional leaders were close to reaching a compromise that would raise America's $14.3 trillion debt ceiling and avoid a potentially disastrous default was also a major factor in sending Asian stock prices higher. The combination of American companies reporting robust profits and the increasing likelihood that the United States will avoid default and do a better job of managing its finances led to Asian stock indexes posting remarkable gains on Wednesday. The Taiwan Capitalization Weighted Stock Index, or the TSEC weighted index, jumped 181.60 points, or 2.13%, to end Wednesday's trading session at 8,706.17. The NIKKEI 225 index of Japanese stocks surged 116.18 points, or 1.17%, to end Wednesday trading in Tokyo at 10,005.90. The KOSPI Composite Index of of Korean stocks climbed 24.74 points, or 1.16%, to finish the Wednesday trading session at 2,154.95. The Straits Times Index rose 30.41 points, or 0.98%, to finish Wednesday trading in Singapore at 3,126.53. The Hang Seng Index of Hong Kong traded stocks rose 101.29 points, or 0.46%, to end the day at 22,003.69. Investors who want to profit from rising Asian stock prices should take a look at the iShares MSCI Taiwan Index Fund EWT, the iShares MSCI Japan Index Fund EWJ, the iShares MSCI South Korea Index EWY and the iShares MSCI Singapore Index Fund EWS. Each of the stock markets represented by these ETFs saw significant gains during Wednesday trading in Asia and could continue moving higher on the back of improving profit reports from the United States and the country's improving fiscal outlook. Investors who feel that the good news from the United States doesn't justify the corresponding rise of Asian stock prices may want to consider the ProShares Ultrashort FTSE China FXP. While China's economic growth remains impressive, the Chinese government has vowed to do more to fight inflation that has risen to intolerable levels. Any good news out of America could be overshadowed if China eventually gets serious about fighting inflation. The ProShares UltraShort MSCI Japan EWV ETF is also worth a look because the Japanese economy still faces a myriad of problems stemming from long-term economic stagnation, as well as the after effects of the devastation caused by the earthquake and tsunami that hit Japan months ago. Investors who feel that there's still too much economic uncertainty facing the United States and are looking for a safe haven investment may want to consider the SPDR Gold Shares GLD, the iShares Silver Trust SLV and the CurrencyShares Swiss Franc Trust FXF. Gold and silver could offer investors some protection against falling stock prices and the Swiss Franc is becoming a popular currency for investors who are concerned about debt problems facing the United States and the European Union.