Asia stable after good news on US and European data
In the early afternoon, the Japanese index of the Asian area – MSCI Asia Pacific Index – lost about 0,4%, under the weight of the 'usual suspects': the forthcoming reduction of the monetary stimulus in America. It doesn't matter that this reduction has become imminent because the US recovery is confirmed; the fact is that the markets had become addicted to this medicine and dose reduction causes withdrawal symptoms.
However, the index is above (+8,4%) the minimum reached on June 25th. A good number for unemployment benefits in America (the weekly data will be released today) would confirm the 'tapering' of the Fed in September: the reduction of purchases of public and para-public bonds is expected by 65% of the analysts who are part of the panel of experts (a percentage up from 50% last month).
The Nikkei is losing more than the other indices in the area, around 2%, in line, as usual, with the yen appreciating, falling below 98 against the dollar. The weakness of the dollar also affects the euro, which is returning towards 1,33. Both oil ($107,3/b WTI) and gold ($1339/oz) strengthened, as did copper, which has always been an advanced indicator of the health of industrial sectors.
http://www.bloomberg.com/news/2013-08-15/asian-stocks-fall-amid-mixed-earnings-fed-concern.html
