Asian stock markets are back on track, leading the regional index to its largest weekly increase since September. The Australian dollar gained ground (0,4% against the US dollar) and the Indonesian rupiah led the list of emerging market currencies with a jump of 1% to the highs of the last two months.
The MSCI Asia Pacific index was up 0,6% as of 10:44am in Tokyo, heading to end the week up 2,1%. The Topix rose 0,2%, the Kospi gained 1% as did the Hang Seng index, the Shanghai Composite jumped 0,4% and Australia's S&P/ASX 200 gained 0,8%.
Asian stocks and emerging market currencies are taking a breather after two stimulus cuts to the US economy burned three billion dollars in the stock market. Also in the spotlight on the trading day were Chinese consumer prices rising more than expected in January, news on the slowdown in US industrial production in January and a weakening of consumer confidence in February.
“It seems reasonable at this point to look for good deals in emerging markets,” said George Boubouras, chief investment officer of EquityTrustees in Melbourne. “The sell-off of stocks in these markets has been extraordinary. Consolidation is an overreaction to concerns raised about the health of these economies.
