The regional stock index – MSCI Asia Pacific – was up 0,2% at mid-day (Shanghai-Shenzen up 0,6%, Nikkei -0,5%). Wall Street's records are consolidating the Asian markets, which however have run less than the American ones given the uncertainties related to the Chinese slowdown.
Inflation in China - the data is from this morning - accelerated from 1,8% in April (on the year) to 2,5% in May, mainly due to food prices - but producer prices are dropped for the 27th consecutive month. The Chinese government is preparing various lines of support for the economy: it has introduced tax breaks for businesses, it has advanced investment expenses, and today the Central Bank has reduced the compulsory reserve ratios for two thirds of commercial banks (and for almost all of the banks and rural credit unions).
The euro weakened to 1,359 and the yen hit 102,3. Gold is more or less stable, at 1254 $/ounce, while oil, thanks to a sharp drop in US inventories, has strengthened, at 104,7 $/b.
