Tokyo is closed on Monday and the MSCI Asia Pacific ex-Japan regional index gained 0,2%, hitting its highest level in a month. The p/e of this index is still modest: 11,9 against 15,2 for the S&P500 and 13,2 for the Stoxx Europe 600.
The growth is driven by the Shanghai Stock Exchange which rises by more than 2%, on the basis of the figure this morning on Chinese GDP, which confirms analysts' expectations. In any case, the Chinese stock market is a prime example of the fact that economic growth does not necessarily mean a strong stock market.
Since – in 1993 – some investments in the Chinese stock exchange have opened up to foreigners, the MSCI China index has increased by 14%, against 452% for the S&P500. In these twenty years the Chinese have immeasurably increased incomes and household wealth, but foreigners who have invested in the Chinese stock market have found themselves with little more than a handful of flies.
The euro is stable around 1,308. Oil climbs back towards 106 (WTI) and gold tries to climb back up to 1289 $/ounce.
