The MSCI Asia Pacific regional index is set to end the week in positive territory, with an increase of 0,7% on Thursday and 0,9% on the end of last week (the Nikkei is back above 9 thousand). The reasons for the good mood lie in yesterday's US data, all positive apart from a decline in car sales. Data on the American labor market will be released this afternoon. The indications coming from the AFP estimates and the recruitment section of the ISM index (PMI) are positive.
The sense that China is improving has contributed to the optimistic tone of markets in Asia. Apart from yesterday's data on the PMI indices, house prices in China - a crucial variable in the Celestial Empire as in America - have increased slightly: real estate transactions have decreased but prices are holding, a sign that the bubble is under control and it's deflating neatly.
The p/u ratios for the Asian area are around 13,2 – against 13,7 for the S&P500 and 12,3 for the STOXX Europe 600. The euro is stable and the yen holds steady, after the slide yesterday, above 80 against the dollar.
http://www.bloomberg.com/news/2012-11-02/asian-stocks-advance-on-u-s-employment-manufacturing.html
