Despite the negative close on Wall Street, Asian markets rallied. The yen stably above 118 against the dollar comforted the Nikkei, while the Chinese stock market rose sharply, reaching its highest level in three years now. There are various reasons behind this performance. On the one hand, the connection with Hong Kong has given foreign investors access to stock market investment (within rather high daily limits), expanding liquidity and audience. On the other hand, in an other-directed economy, monetary policy is becoming more permissive.
The MSCI Asia Pacific regional index is on the rise for the first time in four days. After yesterday's strong recovery, gold has returned to decline and is at 1204 $/ounce. Oil followed the opposite path and after yesterday's sharp fall it recovered to 68,5 $/b (WTI – Brent marks 72,1). Both yellow metal and black gold, however, are on a downward trend.
The euro is stable at 1,246 against the dollar. The Australian dollar recovered after the Reserve Bank confirmed that key rates would be maintained. Futures on Wall Street are slightly positive.
